How Bitcoin and crypto could react to Trump’s tariff Liberation Day on Wednesday

Bitcoin trades above $83,000 early on Monday, recovering from the four-day downward trend in BTC price. Crypto market capitalization is down to $2.783 trillion, wiping nearly 2% of its value in the last 24 hours. 

Traders are preparing for Liberation Day on April 2, and top cryptos see modest gains. 

As Bitcoin gains lost ground, BTC could attempt to break resistance at $85,000, and consistent upward momentum could drive a V-shaped recovery in the asset. 

Crypto traders prepare for Trump’s Liberation Day

US President Donald Trump’s Liberation Day is almost here. April 2 marks a new wave of tariffs and include additional duties on several nations. The policy is set to affect 15 major trading partners of the US. 

Trump’s actions have prompted retaliation from several nations. Traders are digesting the news and anticipate volatility in risk asset prices. 

The state of liquidations in the derivatives market supports the thesis. The crypto market recorded over $327 billion in liquidations in the last 24 hours, and the Fear & Greed Index shows that traders continue to remain fearful, similar to last week and month. 

Crypto Fear & Greed Index | Source: Alternative.me

Bitcoin, Ethereum (ETH), Binance Coin (BNB) and Solana (SOL) recovered slightly in the last 24 hours. 

Will Bitcoin see a V-shaped recovery?

Bitcoin is swiftly rallying toward the $85,000 resistance. The largest cryptocurrency could test resistance at $90,000, before revisiting the $100,000 milestone and re-testing its all-time high at $109,588.

If Bitcoin’s upward momentum is sustained, it could witness a V-shaped recovery in the coming weeks. This requires BTC to remain resilient and see a daily candlestick close above key resistances, flipping those into support levels on the daily price chart. 

Two key momentum indicators, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) support a bullish thesis in Bitcoin. The RSI reads 45 and is sloping upward, and the MACD flashes green histogram bars above the neutral line. 

BTC/USDT daily price chart | Source: TradingView

While there seems to be market uncertainty ahead of Liberation Day, crypto traders are anticipating a similar reaction as previous tariff announcements. Bitcoin has recovered from four flash crashes since the 2024 election results. Therefore, the asset could see a recovery following a decline. 

These categories are worst hit as traders turn risk-averse

Among different crypto token categories, Artificial Intelligence (AI), meme coins and mining tokens appeared to be the worst hit on Monday. Dex aggregator tokens and tokens in the Bittensor ecosystem have noted between a 3% and 5% decline in the last 24 hours. 

Crypto category performance | Source: CoinGecko 

Expert commentary: Dan Greer, co-founder of DeFi App

Dan Greer, co-founder of DeFi App, discussed his views on the Trump administration’s plans for crypto and the recent executive orders. 

Q. What are your expectations from the Trump administration’s plan for the Strategic Crypto Reserve?

The Strategic Crypto Reserve is a bold move. If executed thoughtfully, it could reshape the global financial order. I expect the Trump administration to frame this reserve as both a monetary hedge and a geopolitical tool, and one that strengthens the US Dollar’s digital-era relevance while countering adversaries building parallel financial systems. If implemented transparently and with real digital asset exposure like Bitcoin, it could accelerate institutional adoption, normalize crypto in sovereign portfolios, and set a precedent for how governments engage with decentralized technologies.

Q. Do you expect Bitcoin purchases from the US government, or is it more likely the administration sticks to the original plan?

Given Trump’s messaging and the growing institutional consensus around Bitcoin’s value, I do expect some level of Bitcoin accumulation. The reserve could initially include crypto-backed instruments or ETF exposure, but actual BTC purchases would be the clearest signal of long-term commitment. That said, I wouldn’t be surprised if the administration takes a phased approach such as starting with custodial exposure via private partnerships, then gradually moving to on-chain reserves as legislation and custody infrastructure mature.

Q. What do you think of the Trump administration’s impact on crypto in the first three months of his return to office?

So far, the tone has shifted dramatically from regulatory hostility to strategic positioning. The Trump administration is making crypto a pillar of US financial policy rather than an afterthought. Between the announcement of the Strategic Crypto Reserve, support for stablecoin legislation, and clearer signals around digital asset frameworks, we’re seeing policy alignment that was missing for years. Of course, execution is what matters. But even in 90 days, the market has responded with renewed optimism. We’ve already seen increased capital flows and clearer regulatory momentum.

Q. What are your top three predictions for crypto in the first half of 2025, in terms of passage of crypto-related bills in the Congress, executive orders and progress on the crypto reserve?

Stablecoin legislation passes. With bipartisan appetite and growing adoption, the US will move to regulate stablecoins as digital dollars. Executive orders on digital asset infrastructure. Expect fast-tracked orders to modernize digital asset custody, taxation, and reporting frameworks, clearing the way for institutional participation. Initial crypto reserve action. Whether it’s public ETF exposure, strategic partnerships, or direct on-chain activity, we’ll see concrete steps taken toward operationalizing the Strategic Crypto Reserve.