Bitcoin Hits $88K Amid Trade Tariff Shifts! New Venezuela Tariffs Spark a BTC Price Crash— Is the Market Headed Up or Down?

The crypto market has experienced a surge again as there are reports of Trump trade tariffs easing on US allies. Rumours of this development started at the weekend, which led to Bitcoin’s climb from $84,000 to over $88,000. These reports suggested that the US will be imposing smaller tariffs than it was previously announced. Before Trump had announced that he would put reciprocal and sector-specific tariffs on US trade partners like Canada on April 2. Based on sources from the White House, however, he will only impose the reciprocal tariffs on that day. 

BTC Hits $88,713— What’s Fueling the Market Momentum?

The Bitcoin price surge over the weekend continued until it hit its peak of $88,713 today. Since then, BTC has experienced a pullback and is now trading at $86,551. Dan Greer, the CEO of Defi App, commented on the crypto market reaction to the trade war. “This surge in Bitcoin’s price coincides with reports that the Trump administration is considering narrowing the scope of tariffs set to take effect on April 2.”

Based on the market data, the Bitcoin price surge was accompanied by a brief market-wide rally. All the top 10 cryptocurrencies with the highest market capitalisation reacted positively, with Ethereum going up by 4%. XRP saw a 2% increase, while Solana grew 8% in value. The Nasdaq and the S&P 500 stocks also saw a moderate increase as they grew 2% in value. Dan Greer also commented on this development. “This development has alleviated some market uncertainties, leading to increased investor confidence and a positive response in both cryptocurrency and equity markets.”. 

Trump’s Venezuela Tariff Sends Shockwaves

This hesitation from the US president has led to the crypto and stock market’s resurgence in value. Such development highlights that if the fear of a trade war increases, the risk markets will fall in response. As such, another fall might be coming as the White House announced that the final decision has not been made. The officials stated that it is not determined whether sector-specific tariffs will be imposed or not. 

As highlighted above, Donald Trump’s approach towards foreign affairs has been aggressive. As such, with the recent reports, many had hoped that he had changed this approach, avoiding global turmoil. However, today, Trump shared a Truth Social post on his official account, which has caused a resurgence of economic fears. Based on his announcement, the USA is now imposing a secondary tariff on Venezuela. This means that all countries that purchase oil or gas from Venezuela will be hit with a 25% tariff on imports. 

Trump’s Tariff Tango: Dragging the Market Down Again?

With the continuation of Trump’s ever-increasing tariffs, the market will probably experience a dive again. This is because, historically, such policies have led to negative reactions from markets, the most recent example being Trump’s previous tariffs. On the day of Trump’s inauguration, we saw a Bitcoin price surge to $108,000. However, with each mention and announcement of tariffs by Trump, the market would experience a sharp decline. Trump has been announcing and delaying the tariffs for almost three months now. This has led to investors’ exhaustion and consecutive downtrends in the crypto, wiping out the bullish sentiment.

Escalation Ahead? U.S. Policies Fueling a Global Storm

If the USA’s global policy continues, the trade war will likely escalate further. This is because the countries targeted by Trump trade tariffs, such as Canada and China, have been announcing countermeasures. For example, both China and Canada have announced their counter-tariffs on American goods and imports. Additionally, these policies have damaged the USA’s relations with its European and North American allies. As such, investors should follow these developments closely.