{"id":20797,"date":"2025-04-06T14:31:39","date_gmt":"2025-04-06T14:31:39","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=20797"},"modified":"2025-04-06T14:31:39","modified_gmt":"2025-04-06T14:31:39","slug":"trumps-liberation-day-climax-of-uncertainty-before-crypto-market-recovery","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=20797","title":{"rendered":"Trump\u2019s Liberation Day: \u2018Climax of uncertainty\u2019 before crypto market recovery"},"content":{"rendered":"
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\"Trump\u2019s<\/p>\n

Cryptocurrency markets could be on track for recovery as investor sentiment begins to stabilize following US President Donald Trump\u2019s sweeping tariff announcement \u2014 what some analysts are calling the peak of recent market uncertainty.<\/p>\n

Trump announced his reciprocal import tariffs<\/a> on April 2, which sent tremors across global markets. The S&P 500 lost more than $5 trillion<\/a>, its largest drop on record, surpassing the pandemic-induced crash in March 2020, according to Reuters.<\/p>\n

Still, some analysts see a silver lining to the tariff announcement.<\/p>\n

\u201cIn my opinion, the tariffs are the representation of the uncertainty in the markets,\u201d Micha\u00ebl van de Poppe, founder of MN Consultancy, told Cointelegraph. \u201cLiberation Day is basically the peak of that period, the climax of uncertainty. Now it\u2019s out in the open. Everybody knows the new playing field.\u201d<\/p>\n

Van de Poppe added that he believes Trump is using tariffs as a strategic move to stimulate domestic growth and reduce yields. \u201cTariffs are literally the only way to do that,\u201d he said. \u201cI wouldn\u2019t be surprised if they\u2019re reversed within the next six to 12 months.\u201d<\/p>\n

\"Trump\u2019s
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Average tariff rate on US goods and imports. Source: JP Morgan, <\/em>Ayesha Tariq<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

President Trump\u2019s plan imposes a 10% baseline tariff on all US imports from April 5 and a higher \u201creciprocal tariff\u201d of up to 54% on select countries with larger trade deficits from April 9.<\/p>\n

Related: <\/strong><\/em>Michael Saylor\u2019s Strategy buys Bitcoin dip with $1.9B purchase<\/strong><\/em><\/a><\/p>\n

Import tariffs could trigger Fed easing<\/h2>\n

Still, the end of the uncertainty could bring renewed investment into crypto markets, leading to a recovery, Van de Poppe said:<\/p>\n

\u201cWe\u2019ll start to see the rotation toward the crypto markets in the coming period where there\u2019s more calm and peace in the markets where investors start to buy the dip and understand that some things have been undervalued.\u201d<\/p><\/blockquote>\n

He noted that the economic impact of the tariffs may ultimately lead the US Federal Reserve to lower interest rates and begin a new round of quantitative easing (QE<\/a>), a monetary policy that involves the Fed buying bonds to inject liquidity into the economy.<\/p>\n

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, has predicted Bitcoin could climb<\/a> to $250,000 if the Fed formally enters a QE cycle.<\/p>\n

Related: <\/strong><\/em>Satoshi Nakamoto turns 50 as Bitcoin becomes US reserve asset<\/strong><\/em><\/a><\/p>\n

Trump tariff uncertainty still weighing on sentiment<\/h2>\n

On the downside, the tariff-related uncertainty may continue pressuring risk asset appetite for weeks, according to Noelle Acheson, author of the Crypto is Macro Now newsletter.<\/p>\n

\u201cWe can count on President Trump changing his mind a few times within the first couple of weeks,\u201d Acheson told Cointelegraph. She added:<\/p>\n

\u201cWith heightened uncertainty a given in these markets, we can expect more risk-off behavior, even though some short-term bounces may bring some relief.\u201d<\/p><\/blockquote>\n

\u201cFor crypto, BTC continues to act like a risk asset short-term while its analog counterpart gold breaks through one all-time high after another,\u201d a development that may impact crypto investor sentiment in the short term, Acheson said.<\/p>\n

Meanwhile, crypto intelligence firm Nansen estimated a 70% probability<\/a> that the market could bottom by June, depending on how the tariff negotiations evolve.<\/p>\n