Americas Crypto Daybook: Bitcoin Drops Below $83,000 Amid US Tariff Uncertainty and Market Volatility

CORRECTION (April 3, 11:30 UTC): This article has been updated to reflect that bitcoin declined following the tariff announcement, contrary to an earlier version stating it remained steady. By James Van Straten (all times ET unless otherwise specified). With Liberation Day concluded, the markets now have clarity on US tariffs. Starting April 5, a minimum 10% import tariff will be imposed on all US trading partners, with higher country-specific tariffs taking effect on April 9 for approximately 60 countries. President Donald Trump introduced these tariffs to address perceived trade imbalances and non-tariff barriers, aiming to encourage production reshoring, generate revenue for tax cuts, and create a level playing field for US manufacturers. China is among the most affected countries, facing a new 34% tariff in addition to the existing levy, bringing its total to 54%. Many other Asian economies have also been significantly impacted, while the European Union faces a 20% tariff. There is growing interest in the methodology used by the US to determine the tariff rates, which the administration claims are reciprocal. A user on X claims to have deciphered the formula: by dividing a country's trade deficit with the US by its exports to the US. For instance, Vietnam exports $136.6 billion to the US and imports $13.1 billion, resulting in a $123.5 billion trade deficit. Dividing the deficit by exports yields approximately 90%, aligning with the implied reciprocal tariff rate applied by the US. Global stocks are under pressure, with the Nikkei 225 experiencing a 2.8% decline after dropping as much as 4.6% and the FTSE 100 losing over 1%. Nasdaq futures have fallen by more than 3.5%. Vietnam led the losses in Asia, plummeting 5.5% in its worst single-day drop in over four years. The dollar also weakened, with the yen rallying to 147 against the US currency and the pound to 1.31. The dollar index (DXY) decreased to 102.5. Bitcoin remains above $83,000, although still below its 200-day moving average of $86,400 - a crucial level it needs to reclaim. The US 10-year Treasury yield is hovering just above 4%, its lowest level since October, which is viewed as a positive for the administration's efforts to lower interest rates. Key areas to watch include token events, conferences, token talk, derivatives positioning, market movements, bitcoin statistics, technical analysis, crypto equities, ETF flows, and overnight flows.