March 28, 2025 – Bitcoin (BTC) has made a partial recovery, climbing above $86,000 on Thursday after experiencing a sharp 15% decline earlier this week. The recent volatility was largely driven by concerns over U.S. President Donald Trump’s tariff policies and a notable reduction in institutional demand.
Market analysts warn that further downturns could see Bitcoin testing the $73,000 support level. The cryptocurrency briefly dipped below $85,000 following reports that President Trump is likely to impose a 25% tariff on the European Union, a move that could have broader implications for global financial markets.
Market Impact of Tariff Policy
Bitcoin faced a 5% decline on Wednesday, reaching a low of $82,256, amid growing uncertainty regarding U.S. trade policies. Trump reiterated his stance on imposing 25% tariffs on imports from Canada and Mexico, though enforcement has been delayed until April 2. He also extended these tariff threats to the European Union, stating that levies on automobiles and other goods from Europe are imminent.
“Despite reaffirming his plans to finance the U.S. deficit through import taxes, President Trump has once again postponed tariffs on Canadian and Mexican imports,” said Joshua Gibson. “The delay marks the fourth consecutive time such measures have been pushed back, but the newly announced EU tariffs add another layer of uncertainty to the market.”
Institutional Investors Exit, Increasing Selling Pressure
Adding to Bitcoin’s price struggles, institutional investors have been offloading their holdings, increasing overall selling pressure. BTC has declined for three consecutive days, falling from Monday’s high of $96,500 to Wednesday’s low of $82,256.
Data from Coinglass indicates that Bitcoin spot Exchange Traded Funds (ETFs) saw net outflows of $2.2 billion over the past three days, continuing a trend of institutional sell-offs that have persisted in recent weeks. Analysts warn that if this outflow pattern persists, Bitcoin may experience further downward corrections in the coming days.
As Bitcoin attempts to stabilize above $86,000, traders remain cautious, closely monitoring institutional activity and geopolitical developments that could influence the market’s trajectory.