- Following Trump’s election, anticipated regulatory changes for the crypto sector failed to materialise, resulting in a classic “sell-the-news” effect.
- Altcoins like Ethereum and Solana performed even worse than Bitcoin, suffering losses of up to 50% from their cycle highs.
- Trump plans additional tariffs for April 2nd (‘Liberation Day’) that could affect US imports worth US$1.5 trillion.
- China, South Korea and Japan met in Tokyo, potentially developing a joint strategy against Trump’s tariff policies.
While Bitcoin made an impressive new all-time high of US$109,114 (AU$175,003) on January 20, 2025, it has since lost almost 25% – a steady decline over the past 2.5 months.
And Bitfinex analysts have called it the worst performance in “nearly a decade”. Despite the rally in mid-January, the largest crypto still saw a 12% decline in the first quarter of 2025.
Following Trump’s re-election, strong expectations for what he would do for the crypto sector, “quickly gave way to textbook ‘sell-the-news’ trading as tangible regulatory changes have failed to materialise”, the analysts wrote in a recent note.
Related: Saylor Strikes Again: Strategy Scoops Up Largest Bitcoin Purchase of 2025 to Date
Ever since, the largest crypto has been trading in a range between US$78k (AU$125.1k) and US$88k (AU$141.1k).
But altcoins have performed even worse than BTC, with heavy-weights like Ethereum and Solana down up to 50% from their cycle highs – though ETH has still not made a new all-time high this cycle.
And the US economy isn’t doing all that great either. Despite a narrowing trade deficit and rise in spending, inflation has increased faster than expected as costs for importing goods are going up amid more tariffs, the Bitfinex analysts said.
Crypto Remains Sensitive to Trump Tariff News
Unfortunately, most experts believe that the short-term outlook remains shaky. Analysts from The Kobeissi Letter wrote recently that we’ve just entered the “’reciprocal tariff’ week”.
They said tariffs – which Trump had announced for early April – could cause more headaches and impact US$1.5 trillion (AU$2.4 trillion) in US imports by the end of the month.
President Trump has been discussing this Wednesday, April 2nd, for weeks. This is a day that he has named ‘Liberation Day’ where widespread new tariffs are coming. We believe April 2nd will be the biggest escalation of the trade war to date. Markets are in for a wild week.
The Kobeissi LetterEast Asian Nations Move to Work Together
These tariffs come on top of tariffs already ‘existing and announced’ and will likely cause more backlash. For example, China, South Korea and Japan have just met in Tokyo for high-level talks.
The timing and wording of the meeting have sparked some speculations that the three nations might be preparing a joint effort to combat Trump’s tariffs.
Related: Report Reveals Trump Family Now Holds Majority Stake in Crypto Company
Chinese Foreign Minister Wang Yi urged economic cooperation, without directly mentioning the tariff issue:
[We] all agree that, in the context of an international situation that is intertwined with changes and chaos, as well as the sluggish recovery of the world economy, it is necessary for China, Japan and South Korea to further strengthen communication […] We will uphold multilateralism and free trade, and promote economic globalisation in a more inclusive direction.
Wang Yi, Chinese Foreign MInister
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