‘Liberation Day’ Predicted to Have Major Impact on Crypto Market, Says Expert
April 2, 2025 | By Micah Zimmerman
In a recent commentary sent to crypto.news, Zach Burks, the CEO of Mintology, expressed strong views regarding the potential impacts of former President Donald Trump’s anticipated "Liberation Day" event on the financial markets, particularly in the cryptocurrency sector. Describing the event as potentially an "atomic bomb" for markets, Burks highlights the volatile conditions and significant shifts likely to emerge in the wake of this monumental occasion.
Gold vs. Bitcoin: A Shift in Safe-Haven Preferences
Burks’s analysis underscored a trend where gold continues to be regarded as the favored safe-haven asset for institutional investors. He noted that the recent surge in gold prices is primarily driven by these institutional players, positioning gold as a primary hedge against economic instability. Predictions from Burks suggest that gold might experience short-term spikes exceeding the $3,500 mark, but he cautioned that a correction could follow, particularly after "Liberation Day."
On the other hand, Burks indicated that Bitcoin is increasingly viewed as a protective measure for retail investors amid economic uncertainty. This evolving sentiment appears to set the stage for market volatility, especially in response to pending aggressive trade policies anticipated to result from Trump’s "Liberation Day."
Market Reactions and Predictions
Following some initial gains across the crypto market, the sentiment took a downturn as fears regarding retaliatory tariffs resurfaced. Bitcoin and Ethereum – two of the leading digital currencies – experienced pressure, with Burks predicting a drop in Bitcoin valuations below $80,000 and a predicted decline for Ethereum to around $1,600. Despite these short-term forecasts, Burks maintained a bullish perspective on Bitcoin’s future. He argued that the long-term outlook remains positive due to a significant likelihood of capital shifting away from traditional financial institutions viewed as increasingly unstable. "The outcome for crypto will be positive," he claimed, forecasting that Bitcoin will see substantial appreciation in value once the market stabilizes and investors identify the benefits of digital currencies.
Broader Impact on Global Financial Systems
Burks pointed out the broader geopolitical ramifications that the "Liberation Day" event may trigger, likening the current global instability to pre-World War II conditions. He anticipates significant re-alignments in trade partnerships and alliances that could have long-lasting effects on both traditional and digital financial markets.
As the global economy grapples with these shifts, the implications for crypto investors and institutions could be profound, influencing not only market pricing but also the strategic approaches of institutional players within the financial landscape.
Conclusion
As uncertainty looms around "Liberation Day," traders and investors are advised to remain vigilant about potential market fluctuations. With predictions suggesting intense volatility, Burks’s insights offer a glimpse into how immediate and future market dynamics may shape the crypto landscape. The discussion around safe-haven assets and the evolving role of Bitcoin and gold underscores the complexities of modern investment strategies in an ever-changing global economy.
Stay updated with us as we continue to monitor these developments in the crypto markets.
Share this article:
