Reports from The Block indicate that the aftermath of heavy tariff announcements by President Trump on April 2 has severely impacted both global equities and the crypto markets. However, some analysts suggest that this turmoil has somewhat alleviated the looming uncertainties surrounding Bitcoin and other digital assets.
The announcement of steep tariffs led to a slide in S&P 500 futures by over 2%, wiping out more than $2 trillion in market capitalization. Bitcoin, which was rallying around $88,000 just before the news, propelled by delay rumors, retracted these gains post the tariff news, falling to $82,000. Currently, the leading cryptocurrency is priced around $83,000 per coin, as the total digital asset market cap has shrunk by over 4% in the past 24 hours, according to The Block’s price page. Major altcoins such as Ethereum and Solana also plunged by over 6% on Wednesday, hitting multi-month lows.
However, analysts like Valentin Fournier, Lead Analyst at BRN, and David Hernandez, Crypto Investment Specialist at 21Shares, see opportunities amidst the chaos. They believe that the tariffs’ clarity could stimulate institutional demand and renew buying activity, ultimately leading Bitcoin to regain momentum and potentially reach $90,000 in the near future.
Meanwhile, Bitcoin exchange-traded funds in the U.S., headed by BlackRock, recorded $218 million in inflows on Wednesday, a significant uptick from the net outflows of $157 million the day prior. Still, Ethereum continues to see outflows, indicative of ongoing investor skepticism.
Thomas Perfumo, Global Economist at Kraken, argues that despite the prevalent belief that institutional adoption will temper crypto volatility, the market’s pattern of boom-and-bust cycles is far from over. He suggests that the volatility observed is merely a manifestation of mainstream adoption of this digitally scarce asset class and that these patterns will persist until adoption reaches a critical mass.
Disclaimer: The Block operates independently to provide objective and timely information about the crypto industry. Foresight Ventures, a majority investor of The Block, also invests in other companies in the crypto space. This article is meant for informational purposes and not as financial or other advice.
