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Bitcoin Suffers as Trump Tariffs Spur Return to Pre-Election Levels
XRP’s losses tracked bitcoin (BTC), which faced intense selling pressure after Trump’s tariff announcements. However, BTC-spot ETF inflows helped absorb some retail outflows, underscoring the importance of sticky institutional money.
Farside Investors reported the following April 2 flows:
- Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $118.8 million.
- ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $130.2 million.
- Grayscale Bitcoin Mini ETF (BTC) had net inflows of $34.3 million.
- Bitwise Bitcoin ETF (BITB) recorded net inflows of $33.4 million.
Excluding flows from BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), net inflows totaled $334 million on April 2, reversing April 1’s $157.8 million outflows. Notably, Wednesday’s inflows ended a three-day outflow streak.
However, the rebound in flows may be temporary. The Nasdaq 100 Futures plunged 759 points in after-hours trading in reaction to Trump’s tariffs.
Bitcoin Price Outlook: Key Scenarios
On April 2, BTC slid by 3.07%, partially reversing Tuesday’s 3.20% to close at $82,536.
Santiment commented on the crypto market’s reaction to Trump’s tariffs:
“Trump’s reciprocal tariffs aim to increase government revenue & pressure fairer global trade. But trade war fears have led to immediate crypto volatility.”
On crypto’s role as digital gold, Santiment added:
“The premise of crypto being the alternative ‘digital gold’ has so far proven to be vastly overstated. Instead, Bitcoin has mostly mirrored the S&P 500 throughout 2025 so far, with very temporary cases of decoupling. And as for altcoins, most have fared far worse than BTC.”
However, regarding potential outcomes, Santiment stated:
“So how crypto markets get impacted will likely depend on the world’s reaction now that the US has made their rumored tariffs official. If other countries call Trump’s bluff and start a trade war, there will undoubtedly be some long-term pain seen across both stock and crypto markets. But if they cave and begin to lower their own tariffs toward the US as a gesture to make imports/exports more affordable across the world, this could have amazing bullish consequences.”
BTC potential price scenarios include:
- Bearish Scenario: Trade retaliation, ETF outflows, or opposition to the Bitcoin Act could drag BTC toward $70,000.
- Bullish Scenario: Global tariff reductions, bipartisan crypto support, and sustained ETF inflows could lift BTC toward $109,312.
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