Shocking 5% Market Crash! How Trump’s Trade War Triggered Bitcoin’s Dramatic Drop to $83,000?

The Bitcoin market faced a 1.2% decrease that left its value at $83,000 during April 3 2025. The Bitcoin price declined identically to the entire market slump that began when U.S. President Donald Trump enforced trade tariffs against multiple international business operations. Traders currently worry about its future price trajectory and fear additional market declines after the Bitcoin price drop.

Impact of Trade Tariffs on Bitcoin Price

Major digital assets suffered significant losses due to the tariff announcement which produced substantial effects on the cryptocurrency market. The price of XRP decreased by 3% as ETH and SOL showed similar declines amounting to 4% each. The cryptocurrency market capitalization decreased by 5% after this announcement appeared. Crypto market volatility has been on full display in recent days, with prices fluctuating wildly in response to trade tariffs and other market developments.

Bitcoin investors track existing support thresholds during this current market period. According to market analysts, the successful preservation of Bitcoin prices above $80,000 is crucial to stopping additional market depreciation. Bitcoin will encounter resistance in the area around $85,000 during any possible recovery phase. Market participants monitor the evolving trade policies since these policies continue to affect traditional and digital asset markets.

Bitcoin Price Prediction Forecast: Will the market rebound or continue to decline in 2025?

Bitcoin price prediction models are being put to the test as traders and investors try to make sense of the cryptocurrency’s recent price movements. The Bitcoin (BTC/USDT) 5-minute chart on Binance shows intense price fluctuations through its quick price rise followed by its forceful rejection at approximately $87,000. A fast price drop sent BTC within the support area between $82,000 – $83,000 before buyers intervened. Traders have consolidated BTC at $83,700, but the price remains unable to surpass this mark. An upward breakout above $84,000 levels could indicate rising bullish power, but a failure to maintain present prices will likely generate more downward pressure. 

Analyzed by Triparna Baishnab, published on TradingView, April 3, 2025

Cyclically, the market displays a constant force of leverage between purchasing and selling forces at significant support and resistance boundaries. Technical and price action indicators operate in congruence. Prior to the price reversal, the RSI indicator entered overbought territory, verifying declining bullish pressure and went down into oversold conditions, predicting upcoming bearish recovery.

A Golden Cross on the MACD indicated upcoming bullish potential after a price decline, yet a preceding Death Cross endorsed the bearish market movement. Buyers should maintain control of Bitcoin prices while positive momentum on the MACD continues to push the RSI above the 50-mark. Before entering trades, traders need to monitor whether the trend is confirmed because it remains essential to be careful about market direction. The movement of Bitcoin will be shown by the support level at $82,000 combined with the resistance level at $84,000.

Will the Bitcoin Price Drop Continue to Plague the Crypto Market?

As the Bitcoin price drop continues, investors are left wondering what’s next for the cryptocurrency. Bitcoin experienced an $83,000 drop accompanied by a 1.2% market decrease due to President Trump’s trade tariffs that damaged XRP, ETH, and SOL cryptocurrencies, causing a 5% reduction in total crypto market value. Bitcoin requires surpassing $85,000 to establish its position against $80,000 support due to the present market sentiments globally. As of now, high crypto market volatility is expected with prices fluctuating wildly in response to trade tariffs and other market developments.

The Bitcoin price drop has had a ripple effect on the broader cryptocurrency market, with many other coins experiencing significant losses. Inconsistencies exist between technical indicators because the RSI entered oversold space then pulled back while the MACD displayed an upcoming bullish sign after validating bearish pressure through its previous Death Cross. Bitcoin traders need to monitor if it can maintain its vital support points and resistance levels because a failure to stay above $82,000 would create additional selling pressure until an ultimate price jump beyond $84,000 establishes new bullish trends.