President Trump plans to announce a new round of reciprocal tariffs on April 2. This will be aimed at reducing the $1.2 trillion trade deficit for the US. He calls it “Liberation Day” for the US economy. 

As Trump’s earlier tariffs significantly impacted the crypto market and triggered liquidations, his April 2 decision might also have notable implications for the market.

What’s New with Trump’s Liberation Day Tariff Plans? 

Trump may delay some of the most aggressive sector-specific tariffs. This might include industries like those in autos, semiconductors, and pharmaceuticals.

Instead of blanket sector tariffs, the US might focus only on countries with the largest trade surpluses and the highest barriers to US goods. These are informally referred to as the “Dirty 15”—a group of 10 to 15 countries.

However, the decision is still not final. Trump could still change course, as he’s done in past announcements. 

“I may give a lot of countries breaks, but it’s reciprocal, but we might be even nicer than that. You know we’ve been very nice to a lot of countries for a long time. But I call it liberation day. April 2nd is liberation day,” the US president announced. 

Delaying or narrowing the scope of tariffs could ease some pressure on both the stock and crypto markets. 

As we’ve seen recently, when tariffs seem aggressive, markets often dip. When they seem more measured or delayed, prices often stabilize or rebound.

Possible Scenarios for the Crypto Market Under Trump’s Tariff Plans

The April 2 tariff announcement could impact the crypto market in a few key ways, depending on how aggressive or targeted the final policy is. Here’s a breakdown of how and why it might move crypto prices.

If Tariffs Are Aggressive (Broad, High Duties)

• Risk sentiment drops: Equity and bond markets would likely react negatively to aggressive tariffs, especially on autos, chips, or pharma. That tends to spill over into crypto, which investors still treat as a risk-on asset class.
• Bitcoin and Ethereum could dip, as traders hedge against slower global growth and increased inflation risk.
• Capital flight into USD or cash could trigger short-term outflows from speculative assets like altcoins.

For instance, when Trump reaffirmed steep tariffs in February, Bitcoin dropped below $90,000 amid broader market jitters. The same pattern could repeat.

If Tariffs Are Narrowed (Delays or Selective Targeting)

• Market relief rally: If Trump’s administration confirms they’ll delay auto/chip/pharma tariffs and only target a few countries with high trade barriers, investor anxiety may ease.
• That could fuel a short-term recovery in crypto prices, particularly if equity markets also rebound.
• Increased clarity reduces volatility, which markets—including crypto—tend to reward.

For instance, when Trump hinted at flexibility earlier this month, Bitcoin rebounded to around $88,000. Narrower tariffs could spark a similar uptick.

Overall, the crypto market has been highly sensitive to macroeconomic signals lately. Tariffs drive fears of slower global trade and higher inflation.

All of these affect investor risk appetite. Even though crypto isn’t directly tied to trade flows, it’s deeply entwined with broader liquidity conditions and investor sentiment.

Michael Saylor announced that Strategy (formerly MicroStrategy) just purchased $584 million worth of Bitcoin, bringing its total holdings to over 500,000 BTC. Bitcoin is up this morning, and MicroStrategy’s purchase helps build market confidence.

However, the firm can only continue these acquisitions through sizable debt obligations. It seems unlikely that Strategy could ever sell off these assets without risking market confidence.

Strategy’s Bitcoin Buys Grow Again

Strategy (formerly Microstrategy) has been on a wild trajectory in the last few weeks. It has been one of the world’s largest Bitcoin holders for months, but the company’s purchase sizes have fluctuated wildly in the last few weeks.

Today, however, Michael Saylor announced that Strategy purchased a huge amount of Bitcoin:

“Strategy has acquired 6,911 BTC for ~$584.1 million at ~$84,529 per bitcoin and has achieved BTC Yield of 7.7% YTD 2025. As of 3/23/2025, Strategy holds 506,137 BTC acquired for ~$33.7 billion at ~$66,608 per bitcoin,” Saylor claimed via social media.

The price of Bitcoin is very uncertain right now, and this has left an outsized impact on Strategy. Last month, the firm began offering STRK, a new perpetual security, to fund massive BTC acquisitions.

Shortly before today’s purchase, he upsized his latest stock offering by over $200 million.

This has reinvigorated the firm’s purchasing strategy but also left it with other serious problems. In essence, Strategy will never be able to sell its Bitcoin without seriously damaging the market.

The company has funded these purchases with massive debt obligations, but it has negative cash inflows. Saylor’s routine acquisitions keep market confidence high, but the community watches carefully for any signs of diminished activity.

Enthusiasts carefully watch for smaller purchases, and they would certainly notice a sale of any size.

That is to say, what happens if Strategy’s unsecured debt goes down if the price of Bitcoin goes down? The community would take a forced liquidation as a very bearish sign.

The company’s tax obligations are another possible source of trouble. For now, at least, the price of Bitcoin is on the mend.

After this acquisition, MicroStrategy holds more than 500,000 Bitcoins. As the following chart shows, the company’s BTC purchase activity significantly intensified since late 2024, even though the asset’s price reached an all-time high during that period.

It’s evident that Saylor will serve as an important guarantor of Bitcoin’s confidence. However, if market conditions spin out of control, Strategy’s massive debt could cause some serious trouble.

The market is experiencing renewed optimism as crypto inflows reached $644 million last week.

It is a significant reversal after five consecutive weeks of outflows, suggesting a notable change in investor sentiment.

Crypto Inflows Reach $644 Million, Market Sentiment Recovers

The rebound follows a challenging period in which investor sentiment remained cautious, leading to substantial withdrawals from the market. With total assets under management (AUM) rising by 6.3% since March 10, the latest data suggests a decisive shift in market confidence.

According to the latest CoinShares report, Bitcoin emerged as the primary driver of the market recovery. The pioneer crypto attracted $724 million in inflows, effectively ending a five-week outflow streak totaling $5.4 billion.

The surge in inflows reflects growing investor confidence in Bitcoin, which had previously seen sustained withdrawals amid broader market uncertainty. While Bitcoin saw a strong recovery, the altcoin market experienced a mixed performance.

Ethereum faced the heaviest outflows, with $86 million exiting the asset. On the other hand, Solana recorded $6.4 million in inflows.

The divergence in altcoin sentiment highlights that investors remain selective about where they allocate capital. Specifically, they focus on projects with perceived strong fundamentals. While the data points to continued investor caution regarding Ethereum (ETH), it also indicates investors see strong potential for Solana (SOL).

Meanwhile, most of last week’s infWeek’ssiginated from the US, which saw $632 million enter digital asset investment products.

March Reverses February’s Negative Trend

The return to inflows follows a difficult February and early March, during which crypto outflows surged. A week prior, crypto outflows totaled $1.7 billion, with Bitcoin withstanding the worst withdrawals.

Before that, outflows hit $876 million, led by US investors offloading digital assets amid a bearish trend. Therefore, the latest influx of capital suggests that sentiment may be turning, possibly driven by renewed institutional interest and a more stable macroeconomic outlook.

Further reinforcing the market’s rebound, Bitcoin ETFs (exchange-traded funds) also saw a strong influx of capital. After five consecutive weeks of outflows, Bitcoin ETFs recorded $744 million in inflows last week. This signals increased institutional participation.

The recovery aligns with Bitcoin’s broader market resurgence and suggests that investors are regaining confidence in crypto-based financial products.

“I bet BTC hits $110,000 before it retests $76,500. Why? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause transitory inflation,” wrote BitMex founder Arthur Hayes.

Meanwhile, BeInCrypto data shows BTC was trading for $87,720 as of this writing. This represents a surge of almost 4% in the last 24 hours, with the pioneer crypto steadily edging toward the $90,000 psychological level.

“Bitcoin rose above $87,000 on Monday, its highest since March 7, after dipping to $76,000 earlier this month. The rally comes as reports suggest upcoming Trump tariffs, set for April 2, will be more targeted and less disruptive than feared,” finance expert Walter Bloomberg observed.

The upcoming Trump tariffs, set for April 2 and dubbed “Liberation Day,” are expected to be less disruptive than anticipated. This could boost investor confidence in riskier assets like Bitcoin. The White House’s plan for reciprocal tariffs aims to equalize trade barriers, with Trump emphasizing no exceptions but offering unspecified “flexibility” for certain nations.