US President Donald Trump announced bilateral tariffs on April 2, US Independence Day, imposing a minimum 10% tax on all imports into the country. While Bitcoin and altcoins rose rapidly before Trump's tariff announcement, BTC and altcoins also fell as global markets fell after the announcement of mutual tariffs. While all the gains in Bitcoin and altcoins since the beginning of the week were erased, BTC recovered above $83,000 on Friday, when critical US data was announced. “Markets wasted no time in reacting to Trump’s tariff announcement. BTC sold off heavily, falling from a session high of $88.5K to a low of $81.2K, erasing earlier gains and triggering broad-based liquidations across the crypto complex. More than $221M worth of long positions were liquidated, taking a heavier hit than ETH.” Following headwinds such as tariffs, markets are focused on the US nonfarm payrolls report, which could impact expectations of a Fed rate cut and push cryptocurrency prices higher. Accordingly, experts predict that the non-farm employment data to be announced today may provide momentum for short-term relief in the markets. Singapore-based cryptocurrency platform QCP Capital stated that the figure, which came below expectations, could lead the FED to cut interest rates. Bitcoin and the broader crypto market tend to respond positively to rate cuts, as lower interest rates reduce interest in traditional investments like bonds and push investors toward alternatives like BTC. Additionally, a weaker dollar combined with interest rate cuts could increase BTC’s value as a hedge against inflation or currency devaluation. QCP analysts lastly stated that high volatility continues in the short term and that investors cannot get into the bullish mood. While investors are turning to put positions to protect against possible declines, analysts added that the environment is ready for an increase. “We continue to observe high volatility with more downside protection buyers in the short term. This trend underscores the prevailing mood: uncertain and cautious.” However, with positions currently thin and risk assets largely oversold, the stage could be set for a bounce in the short term.” *This is not investment advice. Continue Reading: Today is Very Critical for Bitcoin! Will the Expected US Data Start the Rise? Analysis Company Announced!
