Throughout 2024, Bitcoin showed impressive growth, and many crypto investors anticipated that the re-election of U.S. President Donald Trump in 2025 would act as a catalyst for further expansion of the digital asset market. Starting in late January, the newly inaugurated president initiated the process of forming a national Bitcoin reserve and signed an executive order aimed at “strengthening American leadership in the digital financial sector.” Despite these moves, the crypto market soon experienced a significant wave of sell-offs, coinciding with Trump’s inauguration on January 20.
Bitcoin’s all-time high price was recorded on the very day of Trump’s inauguration: approximately $110,000. According to CoinMarketCap data, by April 10, Bitcoin had fallen by roughly 25%, dropping to around $82,000. The total crypto market capitalization decreased by the same percentage, falling to $2.6 trillion. Within hours of taking office, Trump imposed tariffs on goods imported from Mexico and Canada, triggering a prolonged correction in Bitcoin’s price.
“We’ve entered an era of protectionism, and the lack of clarity about where the line will be drawn is concerning,” noted Pav Hundal, Chief Market Analyst at Swyftx, commenting on the tariffs and their global market impact.
Events in February
On February 1, the first set of trade tariffs came into effect: a 25% tax on most goods imported from Mexico and Canada, and a 10% tariff on Chinese products. Until that point, Bitcoin had mostly remained above $102,000. However, within two days, BTC dropped by 11%, reaching $91.3K on February 3.
Just one day later, Trump announced a 30-day freeze on the newly imposed tariffs, which was met with enthusiasm by the crypto community. Bitcoin surged 12.5% in 24 hours, rising above $102.5K. This sharp price movement caused combined losses of at least $2 billion for traders.
On February 4, the Chinese government announced retaliatory measures in response to U.S. actions. This sparked another wave of sell-offs in the market, pushing Bitcoin below the psychological threshold of $100,000 per coin. As of April 10, Bitcoin had yet to recover to previous levels.
Throughout the rest of February, Trump did not announce any new tariffs, but he continued to speak actively about a broader trade initiative affecting more countries and products. Meanwhile, on February 24, the major exchange Bybit suffered a high-profile hack, resulting in damages of around $1.4 billion. This dealt a blow to the entire crypto market and led to a prolonged drop in Bitcoin’s price. For the first time in 2025, the price fell below the $80,000 mark.
March Volatility
On March 2, Trump made a significant announcement about expanding the U.S. cryptocurrency reserve to include not only Bitcoin but also Solana (SOL), XRP from Ripple, and Cardano (ADA). Following this news, major cryptocurrencies surged by double digits within hours.
On the following day, March 3, amid discussions of the new crypto reserve, Bitcoin climbed by about 13%, surpassing $96,000. But on March 4, as per the previously announced plan, the tariffs that had been suspended for 30 days came into effect. The market reacted swiftly: within 24 hours, Bitcoin lost another 13%, dropping to around $81,000.
A few days later, China introduced additional tariffs on U.S. agricultural products, including corn and poultry, as well as on various goods such as soybeans and some fruits. These measures coincided with another correction in Bitcoin’s price: on March 11, the leading digital asset hit a local low below $77,000. For the rest of March, the price moved within a narrow range, staying within it until early April.
April Tariffs and Market Response
On April 2, U.S. authorities announced new tariffs ranging from 10% to 50% on goods from over 180 countries. A few days later, they added an additional 50% tariff on Chinese goods.
Initially, the market reacted cautiously to the April 2 announcement, with no major price swings in the following days. However, on April 6, amid official statements about additional tariffs on Chinese products, Bitcoin began to decline and on April 7 settled below $75,000.
When it was revealed on April 9 that the large-scale tariff hike would be postponed by 90 days, the crypto market bounced sharply: Bitcoin jumped 12%, rising above $83.5K.
In the end, almost all significant price fluctuations in Bitcoin during the early months of 2025 were closely correlated with U.S. tariff news — most often targeting China and other major trade partners.