Crypto investors are on edge as U.S. President Donald Trump prepares to unveil new tariffs on what he has dubbed “Liberation Day.” Despite the uncertainty, markets found some relief on Tuesday. Bitcoin jumped more than 2.5%, briefly surpassing $85,000, while other top coins like Ethereum, Dogecoin, and Solana also posted gains.
Analysts say the rally is driven by hope that Trump’s tariffs might be lighter than feared. Sid Powell, CEO of Maple, noted that traders are reacting to hints of “softer policies,” which could mean less economic disruption than originally expected.
Volatility Ahead: Tariffs Could Still Shake Crypto
Although prices are up, experts warn the optimism may be premature. Powell cautioned that if Trump’s tariffs end up strengthening the U.S. dollar or slowing global trade, crypto—as a risk asset—could take a hit. With markets still digesting uncertain policy signals, Powell added: “It’s a wait and see moment for investors.”
Bitcoin and altcoins had been in a slump recently amid growing concerns over a global trade war and fears of stagflation. But Tuesday’s rebound suggests that traders are eyeing a short-term window of opportunity before the full tariff impact is known.
Institutional Buyers Return, But Caution Remains
Pedro Lapenta of Hashdex pointed out that institutional demand is beginning to reappear, a sign that some big players expect the tariff announcements to be manageable. Still, he urged caution, saying markets are likely to remain volatile as the policy details unfold.
This sentiment was echoed by BitBull Capital CEO Joe DiPasquale, who said that while optimism has lifted prices slightly, the market’s reaction will ultimately depend on the scope and implementation of the tariffs.
Stocks, Gold, and Bitcoin All Rise—An Unusual Mix
Interestingly, Tuesday saw gains not only in crypto but also in traditional markets like the Nasdaq and S&P 500. Even gold, a traditional safe haven, ticked higher—suggesting investors are hedging their bets across multiple asset classes.
As Trump prepares to announce the tariffs from the White House Rose Garden, all eyes are on whether “Liberation Day” turns out to be a boost for Bitcoin—or the beginning of fresh turbulence for global markets.