Crypto traders are focusing their attention on an announcement scheduled for today at 23:00 GMT.
U.S. President Donald Trump is preparing to unveil tariffs targeting 15 countries, including China, Canada, and Mexico, in a move he calls “Day of Liberation.” This decision is expected to have sudden and severe effects on Bitcoin (BTC) 
$ 84,676 and altcoins. Bitcoin recently peaked over $100,000 but has been stuck around the $85,000 mark throughout March, indicating ongoing market uncertainty. The new tariffs could potentially trigger both a surge and a significant decline in the cryptocurrency market.
Previous Tariffs Shook Markets
U.S. tariffs are impacting not only trade balances but also financial markets. A decline of over 2% in the S&P 500 index over the last five days signifies a reduced appetite for risk among traders. As cryptocurrency prices have become more closely tied to traditional assets, they are directly affected by these developments. 
Donald Trump Tariffs and Cryptocurrencies Amid economic uncertainty, both stocks and bonds are losing value, leading to an increased search for safe-haven assets. Marc Ostwald, Chief Economist at ADM Investor Services International, notes that investors are turning to gold for risk reduction, while cryptocurrencies seem to be losing their “safe haven” status. Gold has become a favorite among investors once again, rising 18% since the beginning of the year.
Bitcoin May Shine with “Digital Gold” Narrative
Omid Malekan, a faculty member at Columbia Business School, believes that despite current challenges, Bitcoin could eventually take gold’s place and thrive. He suggests that both the cryptocurrency market and tariff policies are relatively new and complex, leading to differing opinions among investors. While some view Bitcoin as a tech-focused risky asset, the narrative of it as “digital gold” is gaining momentum. Malekan argues that just as gold gains value during economic crises, Bitcoin could adopt a similar role. If uncertainty continues and the U.S. dollar weakens, investors may turn back to Bitcoin. The correlation between rising gold prices and Bitcoin could hold true if tariffs impact the market positively.
Expectations for Bitcoin and Altcoins: Rally or Decline?
Zach Pandl, research director at Grayscale, suggests that the worst may already be reflected in prices, indicating hope for improvement. He emphasizes that today’s tariff announcements may come in a harsh but gradual manner, potentially easing market tensions. He also highlights the IPO of Circle, the issuer of the leading stablecoin USD Coin (USDC), as a sign that institutional investors still have confidence in the sector. Sid Powell, CEO of Maple, hopes that the market reaction to the new tariffs will be softer than anticipated. Should there be a brief market reprieve after the announcement, a swift recovery and a wave of FOMO (fear of missing out) could occur for Bitcoin and altcoins. However, Powell cautions that a strengthening U.S. dollar or the risk of a global economic slowdown could still pose threats to the cryptocurrency market.