Bitcoin (BTC) is approaching $85,000 during European trading on Tuesday, April 1, 2025. Traders are on edge, awaiting the effects of U.S. tariffs set to start on Wednesday, April 2. The crypto market is wrapping up a challenging quarter, with Bitcoin down 11% since January—the steepest drop since Q2 2022. The S&P 500 also suffered, losing 3% last week, its worst performance since September 2023.
Altcoins are holding up better. Dogecoin (DOGE) and Cardano (ADA) jumped over 7% in the last 24 hours, leading gains among top cryptocurrencies. Ether (ETH), XRP, Solana’s SOL, and BNB Chain’s BNB each rose nearly 5%. Despite these upticks, the total crypto market cap fell 3%, according to CoinGecko. The CoinDesk 20 index, tracking major coins, also dipped 3% in a day.
Markets Brace for Tariffs and Economic Pressure
A risk-off mood is sweeping through financial markets. Gold hit record highs on Tuesday as investors flocked to safe assets. U.S. stocks stumbled, with the S&P 500’s 3% weekly decline signaling broader caution. The quarter ending March 31, 2025, was tough. Bitcoin’s 11% loss matched the S&P 500’s worst slide since mid-2022. New U.S. tariffs and a flood of economic data from the past month are fueling uncertainty.
Augustine Fan from SignalPlus sees a market in limbo. He noted a lack of big drivers, like ETF inflows, to boost prices. Bitcoin futures on the CME are showing heavy bearish bets, a stark shift from January 2025’s optimism. “This data just shows the current vibe—not a clear trade signal,” Fan said. “A rally could hit fast if sentiment flips, given all the short positions now.”
Steady Hands Amid the Storm
Not everyone is rattled. Glassnode data reveals that Bitcoin holders with 3-6 month positions are seeing profits grow. These investors are trading at their lowest levels since June 2021, a sign they’re holding tight instead of selling. New whales, big players who bought in recent months, are also staying put. Per Glassnode, their resolve is keeping Bitcoin’s price from crashing further.
A March 31, 2025, post from Glassnode on X highlighted this trend. Long-term holders and whales are acting as a buffer against the market’s woes.
Altcoins Rise, But Caution Prevails
While Bitcoin nears $85,000, altcoins are grabbing attention. DOGE and ADA’s 7% gains outshine ETH, XRP, SOL, and BNB’s 5% increases. These boosts come despite a 3% drop in the overall market cap. The CoinDesk 20 index reflects this cautious climate with its own 3% decline. Traders are watching closely as the April 2 tariffs approach.
Jupiter Zheng of HashKey Capital views the dip as temporary. “It’s all about risk-off feelings right now,” he told CoinDesk via Telegram on April 1. He’s still hopeful for the future, citing rising institutional interest and global regulatory support. “Long-term, crypto’s adoption looks strong,” Zheng added.
A Critical Moment for Crypto
Bitcoin’s climb toward $85,000 is testing the market’s nerves. The April 2, 2025, tariffs could shake things up after a quarter that saw an 11% loss for BTC and a rough ride for the S&P 500. Gold’s surge and stocks’ stumble show investors are playing it safe. Yet, crypto isn’t crumbling – long-term holders and whales are standing firm, and altcoins like DOGE and ADA are pushing higher.
Fan warns that without a spark, the market might stay flat. Zheng, however, sees the tariff jitters as a short-term hurdle, with brighter days ahead as institutions and regulators embrace crypto. For now, bitcoin’s $85,000 mark and Wednesday’s tariff deadline are the focal points. The next few days could set the tone for what’s to come.
