Bitcoin experienced a 4% decline in the past 24 hours as concerns grow over imminent U.S. tariffs on major trading partners. President Trump’s announcements regarding tariffs are creating uncertainty, prompting volatility among crypto traders as both Bitcoin and altcoins respond to the evolving situation.
Earlier in the week, Bitcoin (BTC) prices showed signs of recovery as traders reacted positively to suggestions that President Trump might implement more targeted tariffs. After a phone call between Trump and Canadian Prime Minister Mark Carney, initial reports indicated an optimistic tone.
President Trump described the conversation as “very, very good” and expressed hope for favorable outcomes, while Carney’s office stated that both parties agreed to commence “comprehensive negotiations.”
As April 2 approaches, the speculation surrounding additional tariffs on Canada, China, and Mexico continues to loom large, indicating that traders should brace for ongoing market fluctuations and price volatility in Bitcoin and altcoins.
Amidst the turbulence, Dogecoin (DOGE) and XRP have shown resilience, maintaining stability despite the recent downturns in Bitcoin’s value and the associated tariff news.
Crypto Sectors Impacted by Tariff Developments
Following major tariff announcements from Trump, Bitcoin has typically shown declines. However, altcoins have been hit harder, with their combined market capitalization falling 4% in one day and down 23% for the year.
The overall crypto market capitalization, excluding Bitcoin, has plummeted by nearly 36% from its peak of $1.65 trillion in December 2024.
Certain categories, including meme tokens, Solana-based, and AI-related cryptocurrencies, experienced particularly significant losses. While blue-chip meme coins like Dogecoin have held onto some of their gains from 2024, XRP displayed resilience after the Securities and Exchange Commission settled its lawsuit with Ripple for $50 million.
Despite the uncertain backdrop from Trump’s tariff announcements and executive orders, traders in DOGE and XRP have consistently realized profits during Q1 2025.
Bitcoin, Dogecoin, and XRP Lead Crypto Performance
Bitcoin has managed to maintain its standing despite the recent tariff announcements, successfully recovering from significant flashcrashes that had previously erased 20% to 30% of its value this market cycle. Analysts are confident that Bitcoin has hit a cycle bottom below $77,000, marking a multi-month low.
Currently trading around $84,000, Bitcoin is witnessing a rise in institutional interest, with capital inflow directed towards U.S.-based ETFs. Wall Street institutions are eager to incorporate Bitcoin into their treasury balances.
In the meme coin sector, Dogecoin has surged 41% over the past six months, while XRP has skyrocketed nearly 260% during the same period. Dogecoin is poised to challenge resistance levels between $0.20404 and $0.21465, with potential support around $0.16054 if corrections occur.
Technical indicators suggest a possible recovery for Dogecoin, which could rebound from a recent 5% dip and retest these resistance levels in the near future.
Despite some recent declines in both altcoins, long-term holders of Bitcoin, Dogecoin, and XRP have had opportunities to secure profits amidst ongoing market volatility.
However, XRP’s chart reflects a potential for a continued decline, evidenced by a downward trend in momentum indicators. Despite this, XRP remains buoyed by recent positive developments, including the resolution of its SEC lawsuit.
If the price continues to decrease, XRP could test support at $1.9575, while an upward movement could bring it to $2.5900, representing an 18% gain from present values.
Trump’s Tariff Policy Intensifies Pressure on Altcoins and Meme Coins
As U.S. trade tensions escalate due to ongoing tariff announcements, leading altcoins such as Cardano (ADA), Solana (SOL), and Chainlink (LINK) are among the hardest hit within the top 30 cryptocurrencies by market capitalization.
Many altcoins remain significantly below their all-time highs, while Dogecoin and XRP have preserved some of their gains from the past six months. Ethereum (ETH) has been notably affected despite its classification as a commodity and inclusion in the U.S. crypto landscape.
The crypto Fear & Greed Index indicates a lingering sense of caution among traders, reflecting a score of 44, though it’s a mild improvement compared to previous weeks.
Given the speculative nature of meme coins, they often react strongly to market fluctuations and uncertainty. Macro developments, such as tariff announcements, typically exert a negative influence on this segment, leading to capital outflows as traders become risk-averse.
Preparing for Upcoming Tariff Announcements
With Liberation Day (April 2) approaching, crypto traders are bracing for reduced market activity. Bitcoin is likely to test resistance around the $88,000 mark, which has proven to be a support level in the short term. Analysis suggests that a dovish tone from the U.S. Federal Reserve and indications of a more lenient tariff approach from the Trump administration could bolster trader sentiment.
Ongoing positive net inflows into Bitcoin and a decline in Ethereum’s activity hint at altcoins facing more substantial challenges in the wake of tariff announcements. Activity in the derivatives market remains subdued, with low leverage and muted yields.
Traders are urged to exercise caution and adopt a risk-off strategy ahead of Liberation Day, as the day is anticipated to significantly influence the cryptocurrency market’s volatility in light of anticipated tariff developments.
Ethereum Faces Major Challenges Amid Market Turmoil
As the largest altcoin, Ethereum has faced significant scrutiny, with analysts dubbing it as “dead” or a “zombie token” at various points during this market cycle. As Ethereum underpins the DeFi ecosystem, it experiences heightened vulnerabilities compared to other altcoins.
Experts suggest that the pronounced sell-off in Ethereum during market downturns is exacerbated by the reliance on automated trading within the DeFi sector, leading to sharp price declines during leverage-induced sell-offs.
Liquidations of highly leveraged positions among institutional players can have a dramatic negative effect on Ether prices, making Ethereum particularly susceptible to broader market shifts.
