Bitcoin Plunges as Trump’s 25% Tariff Plan Shakes Markets

B. Ali
Last Updated:

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Bitcoin (BTC) took a sharp dive after Donald Trump’s March 3, 2025, announcement of a 25% tariff on imported agricultural goods. The proposed tariffs, set to take effect on April 2, 2025, expand on existing trade restrictions with Mexico, Canada, and China, stoking fears of inflation, supply chain disruptions, and potential trade retaliation.

  • Bitcoin price range: $85,101 – $93,695

  • S&P 500 decline: -1.76% on Monday

  • ISM Manufacturing Index: 50.3% (below 50.6% forecast)

Financial markets reacted swiftly, with the S&P 500 tumbling 1.76% and tech-heavy indices experiencing a similar downturn. Bitcoin mirrored traditional assets, experiencing high volatility before stabilizing around $85,500 by late afternoon.

Bitcoin Mirrors Stock Market Chaos

Cryptocurrency price swings coincided with broader equity market losses, particularly in the Nasdaq, which saw investors pulling back from risk assets. The turbulence was exacerbated by:

  • Algorithmic trading activity amplifying intraday swings

  • Weaker-than-expected economic data, raising concerns about slowing growth

  • Investor repositioning, reacting to Trump’s tariff expansion

The ISM Manufacturing Index came in at 50.3%, slightly below expectations of 50.6%, signaling a slowdown in new orders. The data fueled additional uncertainty in traditional finance, contributing to Bitcoin’s sharp fluctuations.

What’s Next for Bitcoin?

As Trump’s trade policies continue to shake investor sentiment, Bitcoin has once again proven to be a barometer for global financial uncertainty. While the long-term impact remains uncertain, analysts suggest:

  • Monitoring trade policies and economic indicators for signs of continued volatility

  • Tracking equity market trends, as Bitcoin’s correlation with stocks remains high

  • Expecting further price swings, given ongoing macroeconomic pressures

With Trump’s policies influencing financial markets for the fourth consecutive time, investors are closely watching his next moves. As uncertainty looms, Bitcoin remains caught between inflation fears and its potential role as a hedge against economic instability.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.