Bitcoin (BTC) and Top Altcoin Prices Will React to These Two Catalysts Next Week

Bitcoin and top altcoin prices suffered a harsh reversal toward the end of the week as the crypto fear and greed index remained in the fear zone.

Bitcoin and top altcoin prices suffered a harsh reversal toward the end of the week as the crypto fear and greed index remained in the fear zone.

After soaring to $89,000, Bitcoin (BTC) crashed to about $82,000 on Saturday morning. See below.

Bitcoin price drops below $82,000 after hitting high of $89,000 last week. BTC is currently trading at around $81,800. #Bitcoin #Crypto #Cryptocurrency #DigitalCurrency

— Bitcoin Price (@BitcoinPriceBot) March 30, 2024

Meanwhile, the market cap of all digital coins fell to $2.73 trillion.

This article highlights two potential catalysts for Bitcoin and other altcoins next week.

Trump’s reciprocal tariffs

Next week, President Donald Trump’s so-called “Liberation Day,” on which he will impose reciprocal tariffs on the top U.S. trading partners, is expected to be the main catalyst for many cryptocurrencies and stocks.

The reciprocal tariffs aim to challenge what Trump views as unfair levies on US goods and non-tariff barriers

The European Union is reportedly considering concessions, while China plans countermeasures.

Economists caution that these tariffs will hurt American manufacturers by raising their costs and affecting their overseas business. As consumer spending and business investments drop, some experts argue that the U.S. faces an elevated risk of a recession.

In the March Ag Economists’ Monthly Monitor, for example, 62% of economists say the U.S. general economy will see a recession in 2025.

Therefore, on Tuesday, expect Bitcoin and altcoin prices to react to these tariffs. In theory, these assets will likely continue falling when Trump unveils his tariffs.

On the other hand, these assets may bounce back since market participants have already priced in the tariffs. They may also rebound should certain countries make deals with the U.S.

US nonfarm payrolls data

The other key catalyst for Bitcoin and altcoin prices will be Friday’s nonfarm payrolls data from the US.

Economists polled by Reuters expect the data to show that the economy created 128,000 jobs in March. That’s a big drop from the 151,000 it created a month earlier. The unemployment rate is expected to rise to 4.2%.

Historically, crypto and stock prices have reacted to job numbers because of their impact on the Federal Reserve. The Fed is tasked with maintaining stable inflation and low unemployment rates.

These numbers come as Wall Street is divided on what to expect from the Fed this year. Some analysts expect it will maintain rates steady this year because of the stubbornly high inflation, while others see it cutting later this year as Trump’s tariffs trigger a recession.