Markets are bracing for potential turmoil ahead of President Donald Trump’s announcement regarding tariffs. Analysts from Bitfinex caution that the specifics could spark either a relief rally or a more pronounced correction across both cryptocurrency and stock markets.
U.S. President Donald Trump plans to unveil his “Liberation Day” tariff strategy at 4 p.m. ET, which could reshape decades of trade relationships with countries such as China, Mexico, and Canada. Although the exact details remain unclear, proposed measures might include postponed 25% tariffs and new duties on goods like lumber, copper, and microchips.
This uncertainty around tariffs has left markets in a state of anticipation.
“Markets are already trying to adjust to the situation, but the precise details are still unknown,” analysts noted in a recent statement.
According to the analysts, if Trump’s announcement meets current expectations—tariffs in the 12–20% range and aimed at a limited number of countries—markets might respond positively in the near term. In such a scenario, risk assets like equities and Bitcoin (BTC) could see a temporary upswing, especially if retaliation is postponed or doesn’t occur.
“This would support the ‘buy the rumor, sell the news’ phenomenon that often emerges during major, well-anticipated macro events,” the analysts commented. “Bitcoin, which has already experienced a notable correction from its peaks, may also gain from this alleviated uncertainty.”
On the other hand, if the tariffs are harsher than anticipated and applied broadly or come with aggressive statements, the analysts predict a return to risk aversion.
“We might witness a continuation of the downward trend that has been observed since February,” they warned. “Bitcoin remains closely linked to macroeconomic indicators and stock indices, and may decline alongside equities.”
Important market indicators to watch
The analysts pointed out several critical signals to monitor after the announcement: Bitcoin’s current trading range of $78,000–$88,000; outflows from spot ETFs as an indicator of institutional sentiment; and stock performance, particularly within the tech and consumer sectors. Altcoins may lag behind, potentially leading to an increase in Bitcoin’s market dominance.
“Today’s announcement is one of the key catalysts for Q2,” the analysts commented. “Expect heightened volatility over the next 24–48 hours.”