The recent retaliatory tariffs from the European Union have intensified macroeconomic uncertainty, leading crypto analysts to predict heightened volatility in Bitcoin prices, which could potentially fall below the critical support level of $75,000.
Beginning in April, the EU plans to implement counter-tariffs on approximately 26 billion euros ($28 billion) worth of American goods, as announced by the European Commission on March 12, in retaliation to US President Donald Trump’s recent decision to impose a 25% tariff on imports of steel and aluminum.
This latest announcement marks another round of retaliatory tariffs that could revive concerns over a trade war and contribute to market fluctuations in the near future.
Source: European Commission
“The imposition of counter tariffs is not a positive sign as it implies a possibility of retaliatory measures being taken again,” remarked Marcin Kazmierczak, co-founder and COO of a blockchain oracle solution firm.
He indicated that Bitcoin (BTC) may revisit the $75,000 mark, noting that “with stablecoins and real-world assets [RWAs] remaining at their all-time highs, there is potential for a rebound.”
“I don’t anticipate significant impact from this news at the moment, but we will monitor the US response,” he added.
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Other analysts suggest a potential temporary decline in Bitcoin below $72,000 could occur as part of a broader “macro correction” during the current bull market before Bitcoin makes its next upward movement.
However, import tariffs are not the sole influencers of Bitcoin’s pricing, according to Ryan Lee, chief analyst at a research firm, who added:
“Prices are linked to the broader economic climate but are also affected by aspects beyond trade policies. Global institutional adoption, changes in regulations, and high utility contribute to its resilience compared to traditional financial instruments.”
BTC/USD, 1-month chart.
The announcement of Europe’s retaliatory tariffs coincided with the implementation date of Trump’s heightened 25% tariffs on all steel and aluminum imports. Currently, Europe’s suspension of tariffs on US products is set to end on April 1, with the new tariffs becoming fully effective by April 13.
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Global Trade Tariff Uncertainty May Limit Markets Until April 2
According to Aurelie Barthere, a principal research analyst, both traditional and cryptocurrency markets may experience constrained conditions due to tariff-related issues until April 2.
“Tariff-related noise is likely to persist until after April 2, as reciprocal tariff announcements and subsequent negotiations can dampen risk appetite,” she stated.
“That said, we’ve noticed a tentative stabilization in the major US equity indexes and BTC yesterday, at the lows of their respective RSI, which we continue to watch,” she added.
Trump has also threatened to “significantly increase” duties on cars entering the US from Canada, with these changes expected to take effect on April 2 unless Canada modifies some of its trade tariffs.
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