How Donald Trump’s Tariffs Will Impact Bitcoin? Expert Predicts BTC Price Jump to $150K

As the Donald Trump administration prepares to unveil its tariff strategy on what it has dubbed “Liberation Day,” financial markets are bracing for impact, with cryptocurrencies like Bitcoin (BTC) caught in the crosshairs.

The policy, set to be detailed later today (Wednesday) at 10 PM CET, is expected to include reciprocal tariffs targeting 15 countries—among them China, Canada, and Mexico—that have imposed duties on U.S. goods.

While Wall Street frets over economic fallout, analysts are divided on what this means for Bitcoin, the world’s largest digital asset, which has already seen its price slide from almost $110,000 earlier this year to $84,327 as of this morning, up 1% in the last 24 hours.

How Trump’s Tariffs Could Shape Bitcoin’s Price Trajectory

The cryptocurrency market has been a rollercoaster under President Donald Trump’s second term. Investors initially anticipated a boon from his administration, buoyed by promises of regulatory reform and a potential Bitcoin Strategic Reserve.

Yet, the reality has been starkly different. Bitcoin’s value has trended downward through much of March, reflecting broader market unease tied to macroeconomic factors, including the looming tariffs.

Other major digital currencies have followed suit, with Ethereum (ETH) currently near November 2023 lows at $1,863 and XRP, testing the key support level at $2.10 again.

Tariffs and Risk Appetite

The introduction of tariffs—taxes levied on imported goods—has sparked concerns about a global economic slowdown, prompting investors to retreat from assets perceived as high-risk, including cryptocurrencies .

This shift has deepened the correlation between crypto markets and traditional financial instruments like stocks and bonds, which have also faced turbulence. Gold, by contrast, has surged 18% year-to-date, cementing its status as a preferred safe-haven asset amid the uncertainty.

“Macro-driven correlations are increasingly shaping price action in major cryptos,” Aran Hawker at CoinPanel commented for FinanceMagnates.com. “The Nasdaq’s role as a lead indicator in the current risk-off move offers a useful benchmark for attributing parallel weakness across the digital assets market.”

The tariffs, which include a proposed 25% levy on foreign-made cars announced last week, are part of Trump’s broader trade agenda aimed at bolstering domestic industries.

However, they’ve raised fears of retaliatory measures from trading partners, potentially disrupting global supply chains and fueling inflation. For Bitcoin, this has translated into short-term selling pressure, as traders shy away from volatile assets.

A Silver Lining for Bitcoin?

Despite the immediate headwinds, some experts argue that Trump’s tariff policies could ultimately bolster Bitcoin’s long-term appeal. Omid Malekan, an adjunct professor at Columbia Business School, suggests that cryptocurrency might emerge as a viable alternative to traditional safe havens like gold.

“Some people argue that crypto is just a risk-on tech asset and would sell off due to tariffs,” Malekan said, quoted by CoinDesk. “But Bitcoin has found footing in some circles as ‘digital gold’ and the physical variety is soaring on the tariff news. So which will it be?”

This perspective hinges on the idea that tariffs could erode the U.S. dollar’s dominance in global trade. As trading partners seek alternatives to dollar-based transactions, non-sovereign assets like Bitcoin could gain traction.

Zach Pandl, Head of Research at Grayscale, shares this optimism. “Tariffs will weaken the dominant role of the dollar and create space for competitors including Bitcoin,” he said. “The first few months of the Trump Administration have raised my conviction in the longer term for Bitcoin as a global monetary asset.”

Pandl estimates that tariffs have already shaved 2% off U.S. economic growth this year, a drag that has weighed on crypto markets. Yet, he sees a potential turning point with today’s announcement.

Will Bitcoin Price Go Down? Liquidity Withdrawals Signal Potential Price Volatility

A recent surge in Bitcoin withdrawals from active trading addresses could set the stage for significant price movements, according to a new analysis by blockchain researcher Dr. Kirill Kretov. The study, which examines over 50 months of Bitcoin transaction data, reveals a pattern of liquidity reduction reminiscent of conditions preceding the 2020–2021 bull run.

Kretov's research, spanning from July 2020 to March 2025, identifies a notable wave of large withdrawals beginning in late November 2024. This trend is particularly pronounced among addresses transacting between 100 and 10,000 BTC, suggesting involvement of institutional or high-net-worth participants.

“Since late November, we've seen a substantial outflow of BTC from active addresses, particularly those transacting over 100 BTC,” Kretov noted. “This volume level strongly suggests institutional or high-net-worth participation—not retail.”

A negative net value in the analysis indicates more Bitcoin sent than received, pointing to liquidity withdrawal.

“With so much liquidity withdrawn from active entities, the path of least resistance appears to be upward—mechanically speaking. In a thinner market, even moderately large buy orders can have an outsized impact on price,” added Kretov.

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Bitcoin Price Prediction: Potential $150K Move

While these conditions could theoretically support a Bitcoin price of $150,000, Kretov cautions that such moves in low-liquidity environments may lack stability. “It's crucial to recognize that a price reached in a low-liquidity environment is not necessarily stable or structurally supported,” he warned.

The researcher advises a cautious approach, particularly regarding margin trading and leverage. “Personally, rather than targeting specific price levels, I'm focusing on trading volatility: extracting profits from price swings while closely monitoring liquidity flows,” Kretov said.

How does the situation look from the perspective of technical analysis? Based on my review of the BTC/USDT chart, it’s clear that since the all-time high in January, we’ve been moving uninterruptedly within a bearish regression channel. Bitcoin briefly attempted to break out of this channel earlier this month, but the effort failed. The psychological support level of $80,000 was tested and broken, and the price is currently moving sideways.

Where do I think the next resistance lies if Bitcoin manages to break out of the current supply formation? The first resistance would be the local peak of around $87,000, which shouldn’t pose a significant challenge. A much more substantial resistance is at $92,000, where the lows from December, January, and the first half of February align.

Will Trump’s Tariffs Influence Bitcoin?

For now, the crypto community is watching closely as Trump’s tariff policy takes shape. While the immediate outlook remains cloudy, the possibility of Bitcoin emerging as a hedge against a fragmenting global financial system offers a glimmer of hope.

As the clock ticks toward this afternoon’s announcement, investors and analysts alike are preparing for volatility—but also for the chance that Bitcoin could find its footing in a shifting economic landscape.

For more cryptocurrency analyses and forecasts for the biggest tokens, visit FinanceMagnates.com.