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Since US President Donald Trump\u2019s inauguration on Jan. 20, Bitcoin (BTC<\/a>) has swung from a record high of $109,000<\/a> to below $78,000 as major tariff announcements from the US and retaliatory moves from trade partners shaved off chunks of cryptocurrency market value and rattled global markets.<\/p>\n \u201cThe 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,\u201d Justin d\u2019Anethan, head of sales at Liquify, told Cointelegraph.<\/p>\n By mid-March, investors began regaining confidence as White House messaging pointed to a more measured approach. But mixed signals remain, and with a second wave of \u201creciprocal tariffs\u201d looming on April 2 \u2014 dubbed Liberation Day \u2014 market jitters haven\u2019t fully subsided.<\/p>\n Trump\u2019s trade war saga has rattled global markets but evolved to a softer stance by late March.<\/em><\/p>\n<\/figcaption><\/figure>\n Bitcoin hovered above $100,000 until Jan. 26, when Trump threatened 25% tariffs on all Colombian imports after Colombian President Gustavo Petro refused to accept US military aircraft carrying deported migrants. Petro accused Trump of mistreating immigrants and retaliated with tariffs of his own.<\/p>\n Colombia quickly reversed course \u2014 agreeing<\/a> to accept deportees \u2014 after facing pressure over its dependence on US trade. Bitcoin reclaimed $100,000 shortly after. But market sentiment was further shaken by the sudden rise of Chinese AI firm DeepSeek, whose budget-built model sparked fears of disruption in the tech sector and contributed to risk-off sentiment across markets.<\/p>\n Bitcoin\u2019s dip below $100,000 in late January coincided with US tariffs standoff with Colombia and the rise of DeepSeek. Source: <\/em>CoinGecko<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n On Feb. 1, Trump signed an executive order<\/a> to impose 10% tariffs on all Chinese imports and 25% on Canadian and Mexican goods, effective Feb. 4, citing national emergency over immigration and fentanyl. China, Canada and Mexico all threatened retaliation.<\/p>\n Bitcoin tumbled below $93,000, rebounding only after Trump agreed to a 30-day pause on the Canada and Mexico tariffs on Feb. 3. But the Chinese tariffs took effect as scheduled on Feb. 4 \u2014 and that was the last time Bitcoin traded above $100,000.<\/p>\n Bitcoin\u2019s falls as Trump signs executive order, its subsequent recovery was a dead cat bounce. Source: CoinGecko<\/em><\/p>\n<\/figcaption><\/figure>\n Bitcoin remained volatile through mid-February. On Feb. 10, Trump announced<\/a> the removal of steel and aluminum tariff exemptions, raising all metal tariffs to 25%, effective March 12. He then unveiled<\/a> a \u201creciprocal tariffs\u201d plan to match foreign import taxes.<\/p>\n Bitcoin held steady around $93,000 and briefly rallied to $99,000. But on Feb. 21, the momentum collapsed following the Bybit hack<\/a> \u2014 the largest crypto breach in history \u2014 sending Bitcoin back below $90,000.<\/p>\n Related: <\/strong><\/em>In pictures: Bybit\u2019s record-breaking $1.4B hack<\/strong><\/em><\/a><\/p>\n Bitcoin falls just before reaching $100,000 following Bybit hack, then copper tariff. Source: CoinGecko<\/em><\/p>\n<\/figcaption><\/figure>\n On Feb. 25, Trump added to bearish pressure by ordering a review of potential tariffs on imported copper, citing national security. Bitcoin dipped below $80,000 for the first time since November.<\/p>\n March kicked off with Trump issuing<\/a> another order reviewing tariffs on lumber and timber. But crypto briefly rallied after the White House unveiled plans<\/a> for a Strategic Bitcoin Reserve and digital asset stockpile \u2014 including XRP, SOL, and ADA.<\/p>\n On March 4, Trump followed through with 25% tariffs on Canada and Mexico, and doubled Chinese tariffs to 20%. All three countries vowed to retaliate. The next day, Trump granted a one-month exemption on tariffs for US automakers importing from Canada and Mexico. A day later, the White House extended the tariff pause on many imports that qualify under the USMCA, while still threatening reciprocal tariffs on April 2.<\/p>\n Related: <\/strong><\/em>Does XRP, SOL or ADA belong in a US crypto reserve?<\/strong><\/em><\/a><\/p>\n Trump credited Mexican President Claudia Sheinbaum for \u201cunprecedented\u201d border cooperation. Canada also signaled easing tensions. Bitcoin see-sawed on the $90,000 mark but eventually dipped below on March 7, and it has not reclaimed that level at the time of writing.<\/p>\n Meanwhile, Trump finalized the steel and aluminum hikes. Then on March 13, he threatened 200% tariffs on European wine, champagne and spirits if the EU moved forward with a 50% tax on American whiskey as a retaliation against steel and aluminum tax.<\/p>\n Bitcoin trades at around $84,000 on March 1 and March 16 despite large swings in between. Source: CoinGecko<\/em><\/p>\n<\/figcaption><\/figure>\n By mid-March, the administration\u2019s tone began to soften. On March 18, Treasury Secretary Scott Bessent said<\/a> tariffs would be tailored to each country\u2019s trade practices and could be avoided entirely if partners lowered their own barriers.<\/p>\n Financial markets, rattled for weeks, began to recover. On March 24, Bitcoin rose to $88,474 on reports that Trump\u2019s next round of tariffs would be more targeted than initially feared.<\/p>\n Softer White House tone sparks Bitcoin recovery. Source: CoinGecko<\/em><\/p>\n<\/figcaption><\/figure>\n \u201cIn the week leading up to Trump\u2019s reciprocal tariffs on April 2, expect market volatility, corporate lobbying for exemptions, preemptive price hikes, and global diplomatic efforts to mitigate the impact,\u201d Ryan Lee, chief analyst at Bitget Research said in a written analysis shared with Cointelegraph.<\/p>\n \u201cAfter 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.\u201d<\/p>\n Meanwhile, Liquify\u2019s d\u2019Anethan said investors should continue monitoring traditional market developments, especially with Bitcoin\u2019s rising correlation with traditional indexes.<\/p>\n \u201cWith BTC\u2019s correlation to the S&P 500 and other traditional assets, it wouldn\u2019t be silly to discount tariffs and geopolitical maneuvering,\u201d he said.<\/p>\n With April 2 approaching, crypto markets remain fragile \u2014 and investors are bracing for what \u201cLiberation Day\u201d might bring. Trump recently hinted while speaking<\/a> to reporters that tariffs on automobiles, aluminum and pharmaceuticals are under consideration.<\/p>\nColombian tariff standoff and DeepSeek disruption shakes Bitcoin<\/strong><\/h2>\n
Tariff war begins and Bitcoin racks losses<\/strong><\/h2>\n
March shows signs of relief for Bitcoin<\/strong><\/h2>\n
Tone softens and Bitcoin starts rebound but \u2018Liberation Day\u2019 looms<\/strong><\/h2>\n