Bitcoin (BTC), the world’s leading cryptocurrency, has been thrust into the spotlight once again as global markets grapple with the ripple effects of President Donald Trump’s latest trade tariffs, announced in early April 2025.

With Bitcoin dropping below $82,000 this week amid a broader market sell-off, investors are asking a pressing question: Will Bitcoin crash? A new BTC price prediction from Tracy Jin, Chief Operating Officer (COO) of crypto exchange MEXC, suggests a potential plunge to $52,000–$56,000 by summer 2025, driven by escalating trade tensions, market volatility, and shifting perceptions of Bitcoin as a safe haven asset.

Bitcoin Price Is Down, Trump’s Tariffs Shake the Market

This week, Bitcoin’s price plummeted below $82,000, coinciding with a sharp decline in stock indices like the Nasdaq Composite and S&P 500. The catalyst? President Trump’s announcement of unprecedented trade tariffs targeting major U.S. trading partners. Tracy Jin, Chief Operating Officer (COO) of crypto exchange MEXC

“On Thursday, April 3, Bitcoin dropped below $82,000 amid a sharp decline in stock indices, provoked by the introduction of unprecedented trade tariffs,” commented Jin from MEXC. “The excitement swept the entire cryptocurrency market, forcing investors to fix losses due to fears of further escalation of trade conflicts.”

The tariffs, dubbed “Liberation Day” measures by the Trump administration, sparked immediate volatility. Within 24 hours, the crypto market saw $293 million in long positions and $220 million in short positions liquidated, reflecting panic on both sides of the trade. This high volatility underscores a key financial principle: uncertainty breeds market turbulence. As trade negotiations unfold, retaliatory tariffs and Trump’s vocal commentary—often delivered via social media—are expected to amplify these swings.

As of today, Saturday, April 5, Bitcoin price is changing hands at $83,690, dropping slightly by 0,19% and moving in the consolidation channel from the last few weeks:

Bitcoin price today chart. Source: Tradingview.com

But why do tariffs matter to Bitcoin? Unlike traditional assets, Bitcoin operates outside direct governmental control. However, its price is heavily influenced by macroeconomic factors like the U.S. dollar’s strength, interest rates, and investor sentiment—all of which are now under pressure from Trump’s policies.

You may also like: Why is Bitcoin Going Down? China’s 34% Tariff Deepens Market Decline

Why Bitcoin Is Going Down? A Weakening Dollar and Fed Dilemma

Despite the initial market shock, Jin highlights a silver lining: “Cryptocurrency prices are supported by the weakening of the US dollar and a slight recovery of the S&P 500.” A weaker dollar often boosts Bitcoin’s appeal as an alternative store of value, while a rebounding stock market can restore risk-on sentiment among investors. However, the introduction of tariffs could slow the U.S. economy, prompting the Federal Reserve to reconsider its monetary stance.

“The slowdown in the US economy due to the introduction of new tariffs may push the Federal Reserve to resume the cycle of interest rate cuts,” Jin explains. “This circumstance, along with the fall in Treasury yields and the weakening dollar, also has a restraining effect on cryptocurrency and indices.”

Lower interest rates typically benefit risk assets like Bitcoin by reducing the opportunity cost of holding non-yielding investments. Yet, this potential lifeline is overshadowed by uncertainty. Maksym Sakharov, Co-Founder and Board Member of WeFi, a decentralized on-chain bank, adds another layer of complexity:Maksym Sakharov, Co-Founder and Board Member of WeFi

“The current markets are experiencing headwinds as a result of the tariffs imposed by the US administration and retaliatory measures from trading partners. So far, however, market proponents say that Trump’s tariffs are primarily a negotiation strategy, and their effect on businesses and consumers will remain manageable. Adding to the uncertainty are the inflationary pressures that could challenge the US Federal Reserve’s rate-cutting outlook.”

Sakharov also points to a looming fiscal debate in Washington over the federal budget and debt ceiling, which could exacerbate market jitters if unresolved. These macroeconomic crosscurrents—trade wars, inflation fears, and Fed policy—form the backbone of Bitcoin’s near-term trajectory.

Bitcoin’s Safe Haven Status Under Scrutiny

Historically, Bitcoin has been touted as “digital gold”—a hedge against economic uncertainty. Yet, Jin warns that this narrative may be unraveling:

“In its current state, the market is easily manipulated—this carries the threat of new disappointments for retail and institutional investors, which will lead to a further increase in the correlation between Bitcoin and gold. This will call into question the status of Bitcoin as a safe haven asset, which may lead to an even sharper outflow of funds from the ETF.”

The correlation between Bitcoin and gold has risen in recent months, driven by shared drivers like inflation fears and currency devaluation. However, if Bitcoin fails to decouple from traditional markets during this tariff-induced turmoil, investors may lose confidence. A significant outflow from Bitcoin Exchange-Traded Funds (ETFs), which have attracted billions in institutional capital since their approval, could accelerate a downward spiral.

Will Bitcoin Crash? Bitcoin Price Prediction Shows $52K on the Horizon

Jin’s bearish outlook paints a grim picture for Bitcoin in the coming months:

“In this context, a negative scenario appears more likely—Bitcoin may end April in the $76,000–$78,000 range, with a potential drop to $52,000–$56,000 during the summer.”

This prediction hinges on several factors:

• Persistent Volatility: Ongoing trade negotiationsand Trump’s rhetoric are likely to keep markets on edge, amplifying priceswings.
• Economic Slowdown: If tariffs dampen U.S.growth, risk assets like Bitcoin could face sustained selling pressure.
• Loss of Confidence: A shift away from Bitcoin asa safe haven could trigger a mass exodus of capital, particularly fromETFs.

In March 2020, Bitcoin crashed alongside stocks during the COVID-19 panic, dropping from $10,000 to below $4,000 in days. While the current scenario differs, the parallel lies in how external shocks can overwhelm Bitcoin’s resilience. Jin’s $52,000 target aligns with key technical support levels, such as the 200-day moving average, which could act as a floor if selling intensifies.

For Ethereum (ETH), the outlook is even bleaker: “The blockchain faces deeper structural issues that go beyond political influence, such as Trump’s policies, and could see a significant decline in value in the near term.” Issues like network congestion and competition from rival blockchains could compound ETH’s vulnerability.

Will Bitcoin Rebound? A Trump-Led Crypto Revival

Despite the gloom, Jin offers a glimmer of hope:

“Nevertheless, the Trump administration may still bring pleasant surprises for the crypto market. Changes in the refinancing rate, taxation and/or regulation can become a catalyst for an upward price movement. A return to January’s values of $100,000–$102,000 for Bitcoin can stimulate a transfer of capital from gold to Bitcoin and Bitcoin ETF, potentially pushing BTC further toward $118,000–$120,000.”

Trump has previously signaled pro-crypto leanings, including his March 2025 executive order establishing a Strategic Bitcoin Reserve. If the administration pivots to supportive policies—such as tax incentives for crypto investments or streamlined regulations—Bitcoin could rebound sharply. A real-world precedent: After the 2017 Tax Cuts and Jobs Act, risk assets surged as investor confidence soared. A similar catalyst could propel BTC back to six figures.

Personally, on the chart, I identify a support zone around $78,000, and my technical scenario does not currently assume a drop to the $52,000 level. That would be the lowest price for BTC since September 2024.

Bitcoin price long-term supports. Source: Tradingview.com

Like Jin, some analysts also present long-term scenarios that could push BTC prices higher. Omid Malekan, an adjunct professor at Columbia Business School, whose forecasts I recently wrote about, claims that the price of BTC could ultimately rise to as high as $150,000.

Is Now a Good Time to Buy Bitcoin? What Should Investors Do

For investors, the uncertainty demands a strategic approach:

• Beginners: Consider dollar-costaveraging (DCA) to mitigate volatility. Start small and scale up ifBitcoin approaches Jin’s $52,000–$56,000 range—a potential buyingopportunity.
• Seasoned Traders: Watch key support levels($76,000, $52,000) and monitor Trump’s social media for market-movingcues. High volatility favors short-term trades over long-term holds.
• Hodlers: If you believe in Bitcoin’slong-term value, weathering the storm may pay off, especially if Trumpdelivers pro-crypto policies.

Will Bitcoin crash? Tracy Jin’s prediction of a $52,000 BTC price target after Trump’s tariffs reflects a perfect storm of trade tensions, economic slowdown, and shifting investor sentiment. Yet, the potential for a Trump-led crypto renaissance offers a counterbalance to the bearish narrative. As of April 5, 2025, the market hangs in the balance, with volatility as the only certainty.

FAQ: Bitcoin Price Predictions and Investment Insights

Is it possible for Bitcoin to crash?

Yes. Bitcoin can crash due to factors like Trump’s tariffs, trade tensions, and high market volatility, as seen with its drop below $82,000 on April 3, 2025.

Is Bitcoin predicted to fall?

Yes, but only in short-term. Expert Tracy Jin forecasts Bitcoin could fall to $76,000–$78,000 by late April 2025, with a potential drop to $52,000–$56,000 by summer due to economic pressures.

Is it worth investing in Bitcoin right now?

Yes. Volatility makes it risky, but a potential dip to $52,000 could be a buying opportunity for long-term investors, while traders might capitalize on swings.

Can Bitcoin prices go down?

Yes. Prices can decline due to tariff-induced economic slowdown, loss of safe-haven status, and outflows from Bitcoin ETFs, as outlined in Jin’s analysis.

For more cryptocurrency analyses and forecasts for Bitcoin and the biggest tokens, visit FinanceMagnates.com,