Table of Contents
Bitcoin Holds Strong as Trump Tariffs Rock Traditional Markets
In a week of market turbulence, Bitcoin has shown surprising resilience while traditional finance (TradFi) reels from a fresh wave of economic uncertainty. The trigger? Former President Donald Trump’s announcement of sweeping global tariffs sent shockwaves through the markets, sparking the worst stock performances since 2020.
TradFi Bleeds as Tariffs Trigger Panic
Trump’s announcement of reciprocal worldwide tariffs has set off a firestorm in global equities. The Dow, Nasdaq, and S&P 500 all experienced their worst single-day drops in years, with a broader selloff extending through the week. The new policy introduces a baseline 10% tariff on imports, exempting USMCA-aligned countries, but some nations could face duties as high as 49%. The initial round of tariffs takes effect on April 5, with full implementation expected by April 9.
On Friday, Federal Reserve Chair Jerome Powell warned that these tariffs will likely fuel inflation and slow U.S. economic growth, compounding fears across traditional markets.
Bitcoin: A Different Story
While the equity markets plunged, Bitcoin held relatively firm. Although BTC initially dropped from its recent high of $88,000 to a low near $81,500, it began rebounding by Friday, gaining 2.2% and climbing back to around $84,000.
According to analysts, this divergence may point to a changing role for Bitcoin in the global economy.
“Bitcoin is holding up better than altcoins because its market structure has fundamentally changed post-ETF, with demand now coming from retirement accounts, macro funds, and corporate treasuries like MicroStrategy and GameStop,” said Eric Chen, CEO of Injective.
Pantera Capital’s Cosmo Jiang echoed this sentiment, highlighting Bitcoin’s unique position as a “borderless” asset. He pointed out that the tariff-driven pullback is more about geopolitical posturing than any underlying economic weakness.
“Digital assets were the first to react to the news, and they may be the first to rebound,” Jiang said.
Standard Chartered analysts even suggested that Bitcoin is beginning to act as a hedge against U.S. economic isolation—a haven as geopolitical and trade tensions rise. This new narrative could boost Bitcoin’s long-term value proposition among global investors.
Altcoins Hit Harder, But Rebounding
While Bitcoin has shown strength, other major cryptocurrencies initially took a bigger hit. Spot Bitcoin ETFs saw nearly $100 million in net outflows, and some crypto mining stocks dropped as much as 15% on Thursday alone.
Still, the tide seems to be turning. By Friday, most of the top ten cryptos were showing signs of recovery:
- Ethereum up 1.1%
- XRP up 4%
- Solana up 6%
- Dogecoin up 7%
This rebound suggests that crypto may be stabilizing faster than traditional markets, a trend that’s drawing attention from analysts and investors alike.
Institutional Uncertainty Lingers
Despite growing interest, institutional adoption of crypto remains tepid. Regulatory uncertainty continues to act as a major roadblock.
“Institutions are still waiting for clear rules,” said Mark Palmer, equity analyst at Benchmark. “Without codified legislation, they’re hesitant to jump in with both feet.”
Lawmakers are currently working on a crypto market structure bill, and Trump has indicated he wants stablecoin legislation on his desk by August. Until then, the crypto market is likely to remain dominated by retail traders and hedge funds.
Technical Outlook: Bitcoin’s Next Move
John Glover, CIO at Ledn and former Barclays managing director, believes Bitcoin is still within its Elliott Wave cycle and remains technically poised for a new rally.
“Unless we see a close below $62K, the wave count supports another move higher,” Glover said. “There’s significant options activity around the $70K level, but we’re also seeing positioning for upside potential toward $100K by the end of June.”
If true, this could mean that Bitcoin is simply cooling off before another surge, especially if the macro picture improves or stabilizes.
Crypto IPOs May Be Put on Hold
One area of concern is the potential delay of crypto-related IPOs. With markets shaken by tariffs and economic uncertainty, companies looking to go public may hit pause until conditions improve. Strong IPO performance often relies on bullish market sentiment, something currently in short supply.
Final Thoughts
Bitcoin’s ability to stay afloat during this market chaos may be more than just a fluke. With a maturing investor base, evolving market structure, and growing recognition as a potential hedge against economic nationalism, Bitcoin might just be carving out a new role in the financial landscape.
As always, the coming weeks will be crucial. Will crypto continue to decouple from traditional risk assets? Will regulatory clarity finally open the door to institutional adoption? And can Bitcoin push toward six figures in the face of macro uncertainty?
Stay tuned—this ride is far from over.
