Trump’s tariff whiplash rattles crypto: what I saw in the tape and why BTC faded

How the tariff headline hit

• April 2 “Liberation Day” tariffs slapped a 10% minimum levy on all U.S. trading partners. Within minutes, BTC slipped under $88K and crypto stocks like Coinbase and Marathon Digital fell 8–12% as broader equities sold off.
• Two weeks earlier, a tariff tease had already dragged BTC to a three‑week low. Trade‑war fear is now a direct sell trigger for crypto.

The “strategic reserve” that fizzled

• On March 6, Trump ordered a federal “Bitcoin strategic reserve.” Markets expected actual buying; none was announced. BTC fell ~6% on the headline, and about $120B in crypto market cap evaporated in under an hour.
• Morningstar later showed BTC/tech correlations spiking, telling you traders viewed the “reserve” as another macro policy gamble, not a bullish catalyst.

Spillover to stocks and alts

• Investopedia counted $4B+ in crypto‑equity value erased after the April 3 tariff decree; MicroStrategy slid ~11% on weaker mark‑to‑market fears.
• Cointelegraph’s follow‑up showed alt spillover: ETH down ~5%, SOL ~7%, XRP ~9% in the first 24 hours. Reuters noted February’s tariff warning had already unwound most post‑election gains—policy swings have been erasing weeks of upside in days.

What I’m watching next

• Tariff path: Any escalation could keep BTC pinned to risk‑off moves.
• Reserve funding: If the “strategic reserve” ever gets real purchases, it changes the tape; otherwise it’s just noise.
• Tax rumors: A 0% crypto capital‑gains headline keeps popping up with no legislative backing; a real bill would matter.
• Correlations: Watch BTC versus high‑beta tech; rising correlation means macro headlines are still driving.

Bottom line: Trump’s policy “whiplash” is acting like a volatility switch. Until the signals get consistent, expect headline‑driven swings and thin conviction on rallies.