The crypto market has just experienced a huge recession, driving BTC,,,,, ethand sol well below their all-time high. In this case, many investors wonder if it is a good time to “buy dipping sauce” or continue to decline before they come to the stage to recover.
As of April 8, 2025, BTC traded about $79,466, ETH priced at $1,570, and SOL has dropped to $108.
When Trump puts pressure on the cryptocurrency market
The tariff wave collects damage to global trade flows and weakens risk sentiment for investors. Risk assets such as technology stocks and cryptocurrencies have widespread sell-offs. BTC fell from its peak of $109,000 to around $79,000 (down 27%), ETH fell more than 52%, and Sol fell nearly 57% from its high in early 2025.
Read more: Bitcoin plummeted under the influence of Trump’s tariff policy
Many experts believe that Trump’s tariff policy failed to address the root causes of global competition, but instead caused widespread negative spillovers between financial markets. Nobel Prize-winning economist Paul Krugman has been speaking out about Trump’s trade protectionist trade measures, noting that they “lack the economic base and undermine investors’ confidence in a stable macroeconomic environment.”
Trump puts pressure on cryptocurrency space – Source: CNBC.
A Reuters article published on April 3, 2025 pointed out that new tariffs have dropped U.S. stocks and digital assets, BTC fell 3.9%, and 5.2% shortly after ETH was announced.
Nevertheless, cryptocurrencies have shown strong resilience from history, often rebounding after external shocks due to their decentralized nature and increased adoption in the real world. The volatility triggered by tariffs may be short-lived, but it highlights the importance of assessing whether current price levels have attractive buying opportunities.
Opportunities for Risk: BTC, ETH and SOL Price Forecasts
Some major investors see the recent market downturn as a huge opportunity to accumulate digital assets. MicroStrategy CEO Michael Saylor believes that price declines are the “normal part” of Bitcoin’s long-term cycle.
Saylor shared: “We will continue to buy BTC as long as the market corrects the market. Bitcoin remains a scarce asset, protected by open source code and not affected by government manipulation.”
ARK Invest CEO Cathie Wood also continues to buy cryptocurrency-related stocks and expresses unwavering confidence in Bitcoin. She insists that BTC will reach $1 million by 2030, noting: “The current price is just a short-term volatility driven by temporary political policies.”
Raoul Pal, founder of the Real Vision, even believed: “When traditional financial markets are shocked by political factors such as trade wars, cryptocurrencies become safe havens for young capital and do not want to rely on policy makers.”
Furthermore, several analysts believe that sharp corrections caused by macroeconomic factors often trigger stronger recovery cycles in the cryptocurrency market. History supports this view: ETH and SOL doubled their value in six months as market confidence recovers after the FTX crash in 2022.
Sol rose from $8 to $43 after FTX incident – Source: Coingecko
With ETH lowered by more than 50% and SOL’s highest level is nearly 60%, so many investors now see it as a “rare buying opportunity” as long as they believe in the recovery cycle.
Tariffs could weaken the dollar for a long time, thereby boosting cryptocurrencies as a hedge against inflation and concentrated risks.
Some experts say it’s time to rebalance portfolios to address the risk of political and inflation.
Analysts expect cryptocurrency volatility to be high in the next 1-2 weeks as the market absorbs the impact of new U.S. tariffs. QCP Capital said that if trade tensions rise, BTC could retest $75,000 and then rebound as a return on speculative capital.
ETH support may be $1,500, while based on Defi demand, the SOL may range between $95 and $110.
Investors should also watch CPI data and provide signals about interest rates in mid-April. Any hawkish comment from the Fed could put short-term pressure on BTC, ETH and SOL.
Be careful to catch “fall the knife”
Not everyone is optimistic. Nouriel Roubini continued to express strong criticism, noting: “Bitcoin is not a safe haven during the crisis. It is a speculative asset with no cash flow or intrinsic value. Trump’s tariff policy is the ultimate catalyst for the imminent bubble.
Analysts at JPMorgan recently issued a warning: “Tariffs could reignite inflation, forcing the Fed to keep interest rates higher. This situation is not good for risky assets like cryptocurrencies.”
Another relevant factor is the slowdown in institutional capital inflows. A large number of investment funds have not shown clear signs of buying after the recent decline. Coinshares reported that inflows fell by 40%, indicating investors remain cautious and defensive in the cryptocurrency space.
In addition, if the trade war escalates, investors will remain vigilant about short-term risks. If tariffs continue to expand, the threat of a global recession will become a reality. This will put more pressure on sales of risky assets such as ETH and SOL. CNBC and Reuters warned of the scattered risks, hurting investor confidence and adding pressure to the cryptocurrency market.
in conclusion
After the FTX crash in 2022, ETH and SOL both saw strong recovery rates as the market gradually recovered confidence. This experience shows that these assets have huge rebound potential when supported by new capital inflows.
The trade war and the weaker dollar may increase BTC, ETH and SOL as alternative inflation for gold. While this view remains controversial, it offers investors another view of weighing risks against long-term expectations.
Read more: Solana prices drop to their lowest level in three weeks
