The crypto market stays under intense watch as U.S. President Donald Trump plans to announce his “Liberation Day” pronouncement on April 2.

The Bitcoin market exhibits restricted pricing shifts during these days as traders choose to observe before making decisions.

The crypto market stays under intense watch because of macroeconomic uncertainty as U.S. President Donald Trump plans to announce his “Liberation Day” pronouncement on April 2. The tariff announcement set for this Wednesday has put Bitcoin (BTC) and other cryptocurrencies into an anxious conservation state.

Market participants maintain a defensive stance as prices become volatile while public sentiment remains unstable before the upcoming announcement, which could cause prices to move dramatically.

Traders are in a wait-and-see mode as the details of the tariffs have yet to be disclosed, said Presto Research Analyst Min Jung.

The Bitcoin market shows slight pricing shifts during these days as traders prefer to observe before making decisions. Market actors are aware that Trump’s tariff announcement during Q1 will generate extensive results because of recent economic and policy changes resulting in market instability.

The market shows a guarded attitude as trading activities and currency price tiers remain minimized across primary crypto assets. Since market participants maintain neutrality about the upcoming statement, Bitcoin remains confined to a price bracket from $80,000 to $84,000. The cryptocurrency market shows no signs of movement as participants withhold their capital and display limited trading activity among altcoins.

Image 1- Provided by Emmaculate, published on TradingView, April 1, 2025.

Market analysts attribute this slight period of consolidation to overall market ambiguity. Market players remain skeptical about their investment strategy because they need precise information on the details of the implemented tariff.

The market response to the announced tariffs will determine the outcome for cryptocurrencies because a protectionist language will drive them down, while diplomatic messages will result in an upward trend.

Trump’s Tariff and Bitcoin: The Macro Link

Geopolitical disagreements and economic policy adjustments have consistently affected Bitcoin throughout history. Bitcoin receives conflicting reactions toward economic nationalism through tariffs despite its reputation as an inflation hedge and monetary policy protector. Market reactions to higher tariffs include investors moving funds to established safe assets such as gold and dollars, resulting in cryptocurrencies maintaining lower prices.

The Bitcoin price outlook becomes more complex as time passes. A weakening dollar and rising inflation may favor Bitcoin, as investors may view it as an attractive alternative store of value. Market perception of policy effectiveness, along with the entire economic response and central bank actions, will determine the future course of this narrative. Initially, everyone anticipated Trump’s positive crypto approach would lead to rapid outcomes, but according to Enmanuel Cardozo, the market analysis expert at Brickken, ‘’policies require time to be deployed.’’

Global financial instability and market speculation regarding the future presidential victory affected sentiment concerning risk tolerance and politicians’ campaign benefits. According to Cardozo, ‘’there is a strong possibility of market recovery in the second quarter since the Federal Reserve plans to lower interest rates next quarter, and Trump’s team will implement concrete pro-crypto policies.’’

The analyst has added that the rising interest of institutions represents a potential growth catalyst for the market momentum. If the resistance level of $88,668 is successfully broken, the price of Bitcoin might rebound to $100,000.

Scenarios to Watch: Market Outcomes After Liberation Day

Traders in the crypto market analyze various potential situations due to Trump’s unpredictable policy statements. In this case, trade restrictions focus only on select industry segments and trading regions. A decrease in market-caused anxieties would follow a risk asset rally that could push Bitcoin toward reclaiming the $85,000 level.

Technical Bitcoin levels have become the main focus for traders to watch. The price falling beneath the $80,000 support area threatens to initiate a substantial price drop towards $76,000. With macroeconomic conditions favoring risk-on investments, Bitcoin’s renewed bull formation should start above $84,000.