The European Union’s latest wave of retaliatory tariffs has heightened economic uncertainty, leading crypto analysts to predict increased volatility for Bitcoin, which could dip below the crucial $75,000 support level.
The EU announced on March 12 that it will implement counter-tariffs on $28 billion (26 billion euros) worth of US goods starting in April. This decision comes in response to US President Donald Trump’s recent imposition of a 25% tariff on steel and aluminum imports, escalating trade tensions between the two economic powers.
This latest move in the ongoing tariff dispute has raised fears of a renewed trade war, potentially increasing market instability in the near future.
“Retaliatory tariffs signal an ongoing trade battle, which could invite further countermeasures,” said Marcin Kazmierczak, co-founder and COO of blockchain oracle firm RedStone.
According to Kazmierczak, this turbulence could see Bitcoin retest the $75,000 level. However, he noted that “with stablecoins and real-world assets (RWAs) still at all-time highs, Bitcoin has the potential to bounce back.”
“I don’t anticipate immediate drastic effects, but we are closely watching how the US will respond,” he added.
Some analysts expect Bitcoin to temporarily retrace below $72,000 as part of a broader market correction before its next bullish move.
Still, import tariffs are just one piece of the puzzle when it comes to Bitcoin’s price movements, according to Ryan Lee, chief analyst at Bitget Research. He explained that while global economic conditions play a role, factors such as institutional adoption, regulatory developments, and increasing real-world utility contribute to Bitcoin’s resilience compared to traditional financial assets.
The EU’s tariff announcement coincided with the implementation of Trump’s 25% tariff increase on steel and aluminum imports. The current suspension of European tariffs on US goods will expire on April 1, with the new levies taking full effect by April 13.
Tariff Uncertainty Could Restrain Markets Until Early April
Market conditions—both traditional and crypto—could remain subdued due to tariff-related concerns until at least April 2, according to Aurelie Barthere, principal research analyst at Nansen.
“The ongoing tariff uncertainty is likely to persist until after April 2, when reciprocal tariffs and potential trade negotiations take shape, which could dampen risk appetite,” Barthere noted.
She also highlighted that recent market activity suggests some stabilization, with major US equity indexes and Bitcoin finding tentative support at their relative strength index (RSI) lows.
Adding to the trade tensions, Trump has threatened to “substantially increase” tariffs on cars imported from Canada starting April 2 unless Canada adjusts its trade policies.
As global trade policies remain in flux, investors and traders are keeping a close watch on potential market reactions and Bitcoin’s ability to weather the storm.
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