Bitcoin’s price saw sharp movements following President Donald Trump’s announcement of sweeping tariffs on April 2, with analysts suggesting the market drop could present a buying opportunity. S&P 500 futures fell over 2%, erasing more than $2 trillion in market value, while Bitcoin initially surged to $88,000 amid rumors of a delay in tariffs before falling to $82,000. As of April 3, Bitcoin was trading at around $83,000, with the overall digital asset market down more than 4% in 24 hours. Major altcoins, including Ethereum and Solana, also saw declines of over 6% and remained at multi-month lows.
Despite this volatility, some analysts see the tariff announcement as removing uncertainty from the market. Valentin Fournier, Lead Analyst at BRN, stated that with speculation now reduced, institutional investors could return, increasing buying pressure. David Hernandez, a Crypto Investment Specialist at 21Shares, noted that while the tariff rates were slightly higher than expected, the announcement provided much-needed clarity, which could encourage institutional investment. Both analysts pointed to Bitcoin’s potential to regain momentum and possibly approach $90,000.
Bitcoin exchange-traded funds (ETFs) reflected this sentiment, with the group led by BlackRock registering $218 million in inflows on April 2, following $157 million in net outflows the previous day. Ethereum, however, continued to see investor skepticism, with outflows persisting and its price remaining 55% below its cycle high.
Kraken’s Global Economist, Thomas Perfumo, pushed back against the notion that institutional interest is stabilizing crypto price swings. He argued that Bitcoin’s market cycles will persist until adoption reaches a critical mass. Perfumo emphasized that volatility should not be viewed negatively but as a sign of strong demand meeting a scarce asset. He pointed out that mainstream adoption does not follow a straight path and that fluctuations are expected.
Some analysts framed the recent market turbulence as an overreaction, attributing the sharp sell-off to investor uncertainty surrounding U.S. trade policy. They noted that Bitcoin, often compared to gold as a store of value, remains a preferred asset in uncertain economic conditions. Meanwhile, Ethereum has struggled to attract similar levels of investor confidence, reflecting divergent sentiment within the crypto market.
With Bitcoin ETFs showing strong demand and institutional interest seemingly returning, analysts expect Bitcoin’s price to stabilize and possibly push higher in the coming weeks. However, market participants remain cautious, watching for further developments in trade policy and macroeconomic conditions that could influence asset prices.
