Bitcoin is hovering around $85,000 as Trump prepares to unleash sweeping tariffs on what he calls “Liberation Day.” But while some traders brace for another crypto sell-off, others argue this moment could be a turning point—where Bitcoin finally steps into its long-hyped role as “digital gold.”
Tariff Pressure Keeps Bitcoin Pinned Below Resistance
Bitcoin is still stuck in a funk. After sliding from $105,000 to $76,600 in March, it’s clawed back to $85,000 but keeps getting smacked down at $85,500. Traders are bracing for impact as Trump prepares 25% tariffs on auto imports and sweeping measures targeting countries like China and Mexico.
The fear is familiar. More tariffs mean more inflation, a weaker economy, and a risk-off environment. That’s bad news for crypto, which still trades like a tech stock. In March, Bitcoin dropped $13,000 overnight after Trump announced an earlier series of tariffs.
As QCP Capital put it in a Telegram note, “The U.S. seems increasingly intent on isolating itself… we expect all risk assets to remain under pressure.”
Analysts See Tariffs Boosting Bitcoin’s Long-Term Case
But not everyone’s ducking for cover. Zach Pandl, head of research at Grayscale, told CoinDesk he believes the worst might already be priced in—and that this could be the moment Bitcoin starts acting like the inflation hedge it’s supposed to be.
“If we see an announcement that is tough but phased… my expectation is that markets will rally on that news,” Pandl said. He also argued tariffs could weaken the dollar’s global dominance, making room for Bitcoin to grow into a serious monetary alternative.
Omid Malekan, a Columbia Business School professor, backed that view. “Bitcoin has found footing in some circles as digital gold,” he said, noting that gold (CM:XAUUSD) has surged 18% this year as inflation fears rise.
Traders Warn Key Support Must Hold
Still, others urge caution. According to Cointelegraph, AlphaBTC said Bitcoin must stay above $84,000 or risk sliding below the March low of $79,900. Trader Daan Crypto Trades added, “Depending on the severity of the tariffs… a larger move is due. A lot of volatility is pretty much a guarantee today.”
So, is Bitcoin finally becoming digital gold? Maybe. But only if it survives what comes next. At the time of writing, Bitcoin is trading at $86,203.
