The crypto market is not performing well, with Bitcoin and most cryptocurrencies remaining in a technical bear market

Bitcoin (BTC) has plunged from its all-time high of $109200 in January to $82000. Similarly, the XRP price has crashed by over 38% from its 2025 highs

The crypto market isn’t performing well, with Bitcoin and most cryptocurrencies remaining in a technical bear market after declining by over 20% from their recent highs.

All cryptocurrencies tracked by CoinGecko lost over $1 trillion in value in the first quarter of the year.

BTC, XRP, HBAR, JASMY, and Other Altcoins Crashed

Bitcoin (BTC) has plunged from its all-time high of $109,200 in January to $82,000.

Meanwhile, the XRP price has crashed by over 38% from its 2025 highs, while other popular coins like Hedera Hashgraph (HBAR), JasmyCoin (JASMY), and Ethena (ENA) have plunged by over 50% from their November 2021 highs.

The main topic investors are discussing is Donald Trump’s economic policies, including government cost cuts and tariffs.

He has announced a set of numerous tariffs this year. He imposed a 25% tariff on all imported steel and aluminum, and last week, he announced a 25% tariff on all vehicles imported to the US.

Trump has also increased tariffs on Canadian and Mexican goods from nearly zero to 25%. On Wednesday, he will announce his Liberation Day reciprocal tariffs on goods from other countries.

These tariffs are an unpredictable event with significant consequences, often referred to as a “black swan event,” due to their implications on the US and the global economy. For one, there is a risk that these tariffs will lead to a recession by affecting consumer confidence. Data released last week showed that consumer confidence plunged in March.

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Impact of Trump’s Liberation Day Tariffs on Bitcoin and Altcoins

In context, the most likely scenario involves these Trump tariffs leading to a strong decline in stocks and cryptocurrencies.

Indeed, the S&P 500, Nasdaq 100, Dow Jones, and the Russell 2000 indices have moved into a correction. The tech-heavy Nasdaq 100 index has even formed a death cross, indicating a strong bearish breakdown.

Similarly, the crypto market, where currencies like BTC, HBAR, and XRP have entered a bear market.

However, there is a likelihood that crypto and stocks will rebound when the reciprocal tariffs come into effect. This is because these tariffs might trigger a recession in the US, which can be advantageous for risky assets.

Lots of attention to Goldman raising its recession forecast to 35%. Less over them raising their inflation forecast.Cut rates with rising inflation will be taken badly by the bond market. Remember the bond yield reaction to the rate cuts in September? They went straight up.

A recession in the US will likely motivate the Federal Reserve to intervene by reducing interest rates and implementing quantitative easing (QE). Quantitative easing is a scenario where the Fed prints cash and buys bonds and mortgage-backed securities.

Historically, Bitcoin and other cryptocurrencies such as XRP and HBAR perform well when the Fed is reducing rates. A notable example of this occurred in 2020 when the economy entered a recession due to the COVID-19 pandemic.

The Fed’s rate cuts post-Global Financial Crisis (GFC) in 2009 led to a stock market boom.