Crypto Market Posts Modest Gains as Trump’s Tariffs Loom

The cryptocurrency market ticked up on Tuesday, but investors remained cautious as President Donald Trump’s tariffs approach amid disappointing economic data.

At the time of writing, Bitcoin (BTC) had risen by 2.2% in the past 24 hours, hovering around $85,300. Meanwhile, Ethereum (ETH) gained 4.3% to $1,924, while XRP climbed 1.6% to $2.16. Solana (SOL) also recorded a 2% increase, trading at $129.

The total cryptocurrency market capitalization rose by nearly 1% in the past 24 hours, reaching $2.86 trillion, according to CoinGecko data.

During the same period, total liquidations amounted to $242 million. Bitcoin (BTC) led with $73 million in liquidations, followed by Ethereum (ETH) at $48 million, while altcoins accounted for $26 million, according to CoinGlass.

Ongoing Uncertainty

Experts noted that while today’s gains were encouraging, uncertainty continues to weigh on investors, especially as Trump’s "Liberation Day” tariffs approach on April 2.

“The week began with caution ahead of the imminent implementation of new trade tariffs by the US and its trading partners,” said Quasar Elizundia, Research Strategist at Pepperstone. “Starting tomorrow, reciprocal tariffs are expected to be introduced, followed on Thursday by those targeting the automotive sector.”

Elizundia explained that these measures have not only intensified global uncertainty, but also increased the risk of stagflation.

“While markets still hold on to some degree of optimism, supported by expectations that the Trump administration may soften the tariff rollout, that confidence has significantly waned following the release of today’s economic data, particularly negative for the manufacturing sector,” Elizundia said.

On Tuesday, the Institute for Supply Management's (ISM) Manufacturing PMI registered 49.0 in March, down from February's 50.3 and below experts’ expectations of 49.5. This decline raises concerns about a potential slowdown in the economy.

Bullish Seasonality

This latest macroeconomic data arrives as Bitcoin (BTC), Ethereum (ETH), and the S&P 500 have all recorded their worst quarterly performance in three years, according to a new QCP report.

However, as Q2 begins today, the trading firm highlighted that April has historically been a “seasonally strong month for crypto,” though it advised a cautious outlook.

Anthony Anzalone, CEO and Founder of XION, echoed this sentiment in a statement to The Defiant. “What’s notable is the strengthening relationship between cryptocurrency and traditional risk markets, evidenced by similar cautious sentiment in equities and commodities,” he said.

He added that Bitcoin’s performance mirrors this correlation, which indicates that “institutional players are temporarily suspending their acquisition strategies until there’s better visibility on how markets will adapt to these impending trade measures.”