BTC’s Wild Ride Isn’t Over: Fed’s Move Up Next

President Donald Trump's recent introduction of a universal 10% import tariff, along with additional “mutual tariffs” for countries with significant trade deficits, has had immediate repercussions across financial markets, including the cryptocurrency sector.​

The announcement led to a rapid sell-off in cryptocurrencies like Bitcoin and a drop in stock prices for companies reliant on Asian supply chains.​

Market participants are now closely watching upcoming employment reports for signs of changes in unemployment rates and potential shifts in interest rate policy by the Federal Reserve.

Сheck this out: Why Is BTC Dropping? Trump’s Tariff Shock and the Big Tech Meltdown

Understanding the Impact of Tariffs on Cryptocurrency Markets

The recent tariff announcements have unsettled the cryptocurrency market, with Bitcoin's price tumbling from $88,500 to $81,200. ​

This sharp movement led to liquidations surpassing $221 million in long positions, disproportionately affecting Bitcoin over Ethereum. ​

Investors had anticipated market volatility, moving large quantities of BTC, ETH, and XRP to exchanges prior to the news. For example, Bitcoin transfers spiked to 2,500 BTC per block, and Ethereum's hourly exchange inflows reached 80,000 ETH. 

Some calm is returning to the crypto markets after intense volatility. By morning:

• BTC pushed past $83K,
• ETH found its footing at $1.8K,
• XRP, SOL, and ADA bounced back with over 2% gains.

While it’s too soon to call it a recovery, sentiment appears to be balancing.

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Stock Indices Slide, Crypto ETFs React

Wall Street was rattled:

• S&P 500 futures slumped over 3%,
• Nasdaq 100 tumbled past 4%.

Retail sectors were hit hardest—shares of American Eagle plunged more than 17%.

Meanwhile, crypto-oriented ETFs experienced heightened activity, pointing to a risk-off shift among investors.

On April 3, spot Bitcoin ETFs collectively saw $99.86 million in net outflows, SoSoValue reports. Still, BlackRock’s fund stood apart, pulling in $65.25 million in new inflows.

Investors are bracing for signs of softness in the U.S. labour market. A weaker-than-expected print would bolster the case for further Fed rate cuts this year, as policymakers attempt to cushion a decelerating economy,

QCP analysts outline.

Today’s release of U.S. non-farm payroll data could shape the near-term outlook. While the recent market mood remains shaky, QCP sees potential for a bounce—but only if macro indicators show a slowdown is underway.