Bitcoin’s price dropped to $80K after Trump tariffs

Bitcoin) has risen in value since Donald Trump was inaugurated as US President on Jan. 20.BTCThe ) swings from a record high of $109,000 The value of the cryptocurrency market has fallen to less than $78,000, as major US tariff announcements and trade partner retaliatory actions have shaved chunks off and shaken global markets.

“The back-and-forth on tariffs, with Trump sometimes tough and sometimes accommodating, has left markets in a limbo state, where few people are willing to be decidedly bullish but just as few are willing to part with their assets, fearing to be left on the side-lines at the next rally,” Justin d’Anethan told Cointelegraph that he is head of Liquify’s Sales Department.

Investors began to gain confidence by mid-March as White House messages pointed towards a more moderate approach. There are still mixed signals, however. With a second round of “reciprocal tariffs” looming on April 2 — dubbed Liberation Day — market jitters haven’t fully subsided.

DeepSeek and Colombian tariffs disrupt Bitcoin

Bitcoin was above $100,000 up until January 26, when Trump threatened to impose 25% tariffs on imports from Colombia after President Gustavo Petro of Colombia refused US military aircraft that carried deported migrants. Petro accused Trump and his administration of treating immigrants unfairly, and in response he imposed tariffs on all imports from Colombia.

Colombia quickly reversed course — agreeing to accept deportees — after facing pressure over its dependence on US trade. Bitcoin recovered $100,000 within a few days. The sudden rise of Chinese artificial intelligence firm DeepSeek, with its budget-built models, caused a fear of disruption and a risk-off mood across the markets.

Bitcoins suffer losses as a result of the tariff war

Trump took office on Feb. 1. signed an executive order Impose 10% tariffs on all Chinese products and 25% on Canadian goods as of February 4th, citing national emergencies over immigration and the fentanyl. China, Canada and Mexico have all warned of retaliation.

Bitcoin dropped below $93,000. It only rebounded after Trump’s agreement to suspend the tariffs against Canada and Mexico for 30 days on February 3. But the Chinese tariffs took effect as scheduled on Feb. 4 — and that was the last time Bitcoin traded above $100,000.

Bitcoin prices remained volatile throughout February. Trump’s February 10th tweet announced On March 12, the metal tariffs will be raised to 25%. He said that he would then unveiled The aforementioned “reciprocal tariffs” Plan to equalize foreign import taxes

Bitcoin briefly reached $99,000 and then retreated to around $93,000. The momentum slowed down on February 21. following the Bybit hack — the largest crypto breach in history — sending Bitcoin back below $90,000.

Related: In pictures: Bybit’s record-breaking $1.4B hack

Trump, under the pretext of national security, increased bearishness on Feb. 25 when he ordered a review potential tariffs against imported copper. Bitcoin fell below $80,000, the lowest level since November.

Bitcoin’s March is looking better

Trump’s March began with Trump issuing Another order reviewing the tariffs on timber and lumber. Crypto briefly rose after the White House unveiled plans for a Strategic Bitcoin Reserve and digital asset stockpile — including XRP, SOL, and ADA.

Trump doubled Chinese tariffs from 10% to 20% on March 4. The three nations vowed to respond. Trump then granted an exemption of one month on tariffs to US automakers that import from Canada and Mexico. The White House then extended the tariff suspension on many of the imports covered by the USMCA. However, it still threatened reciprocal tariffs for April 2nd.

Related: Does XRP, SOL or ADA belong in a US crypto reserve?

Trump credited Mexican President Claudia Sheinbaum for “unprecedented” Cooperation at the border. Canada has also indicated a lowering of tensions. Bitcoin oscillated between $90,000 and below the mark in March. It has not yet regained that level.

Trump has also completed the increases in steel and aluminum. On March 13, Trump threatened to impose 200% tariffs against European wines, champagnes and spirits in retaliation for the EU’s 50% tax on American whisky.

Tone softens and Bitcoin starts rebound but ‘Liberation Day’ looms

Mid-March saw the tone begin to change. Treasury Secretary Scott Bessent was appointed on March 18. said Tariffs could be tailored according to the trade practices of each country and avoided if all partners lower their barriers.

The financial markets began to stabilize after being roiled for several weeks. Bitcoin climbed to $88,474 by March 24 on news that Trump was going to target tariffs in a more precise manner than first thought.

“In the week leading up to Trump’s reciprocal tariffs on April 2, expect market volatility, corporate lobbying for exemptions, preemptive price hikes, and global diplomatic efforts to mitigate the impact,” Ryan Lee is the chief analyst of Bitget Research. He shared a written report with Cointelegraph.

“After the tariffs take effect, anticipate inflation spikes, supply chain disruptions, and mixed job outcomes, with potential stock market shocks and retaliatory trade measures from partners like China and Canada possibly slowing US economic growth.”

d’Anethan, Liquify’s d’Anethan, said that investors need to continue watching traditional markets, particularly with Bitcoin’s increasing correlation with traditional indices.

“With BTC’s correlation to the S&P 500 and other traditional assets, it wouldn’t be silly to discount tariffs and geopolitical maneuvering,” He said.

With April 2 approaching, crypto markets remain fragile — and investors are bracing for what “Liberation Day” Trump recently hinted that. Trump hinted recently that speaking To reporters, he said that tariffs against automobiles as well as aluminum and pharmaceuticals were being discussed.

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