Time to Buy the Dip?

The crypto market has just experienced a significant downturn, pushing the prices of BTC, ETH, and SOL far below their all-time highs. In this context, many investors are wondering whether the present is a good time to “buy the dip” or if the market will continue to decline before staging a recovery.

As of April 8, 2025, BTC is trading around 79,466 USD, ETH is priced at 1,570 USD, and SOL has dropped to 108 USD.

When Trump Puts Pressure on the Crypto Market

The wave of tariff imposition disrupted global trade flows and dampened investor risk sentiment. Risk assets such as tech stocks and cryptocurrencies saw a broad sell-off. BTC dropped from its peak of 109,000 USD to around 79,000 USD (a decline of more than 27%), ETH fell by over 52%, and SOL dropped nearly 57% from its early 2025 highs.

Read more: Bitcoin Plunges Amid Fallout from Trump’s Tariff Policy

Many experts argue that Trump’s tariff policies fail to address the root causes of global competition and instead create widespread negative spillovers across financial markets. Nobel Prize-winning economist Paul Krugman has been a vocal critic of Trump’s protectionist trade measures, stating that they “lack economic foundation and undermine investor confidence in a stable macroeconomic environment.”

A Reuters article published on April 3, 2025, noted that U.S. equities and digital assets plunged following the new tariffs, with BTC falling 3.9% and ETH down 5.2% shortly after the announcement.

Nonetheless, crypto has historically shown strong resilience, often rebounding after external shocks due to its decentralized nature and increasing real-world adoption. The volatility triggered by tariffs may be short-lived, but it highlights the importance of evaluating whether current price levels present attractive buying opportunities.

Opportunity Amid Risk: BTC, ETH & SOL Price Prediction

Some major investors see the recent market downturn as a golden opportunity to accumulate digital assets. Michael Saylor, CEO of MicroStrategy, considers the price dip a “normal part” of Bitcoin’s long-term cycle.

“We’ll continue buying BTC whenever the market corrects. Bitcoin remains a scarce asset, protected by open-source code, and immune to government manipulation,” Saylor shared.

Cathie Wood, CEO of Ark Invest, has also continued purchasing crypto-related equities and expressed unwavering confidence in Bitcoin. She maintains her prediction that BTC will reach 1 million USD by 2030, stating that “current prices are just short-term fluctuations driven by temporary political policies.”

Raoul Pal, founder of Real Vision, even argued: “When traditional financial markets are rocked by political factors like trade wars, crypto becomes a safe haven for younger capital that doesn’t want to rely on policymakers.”

Additionally, several analysts believe that sharp corrections caused by macroeconomic factors often trigger stronger recovery cycles in the crypto market. History supports this view: following the FTX collapse in 2022, both ETH and SOL doubled in value within six months as market confidence returned.

With ETH down more than 50% and SOL nearly 60% from their highs, many investors now see this as a “rare buying opportunity”, provided they believe in a recovery cycle.

Tariffs may weaken the U.S. dollar long-term, boosting crypto as a hedge against inflation and centralized risks.

Some experts say it’s time to rebalance portfolios toward assets resilient to politics and inflation risks.

Analysts expect high crypto volatility in the next 1–2 weeks as markets absorb new U.S. tariff impacts. QCP Capital says BTC may retest 75,000 USD if trade tensions rise, then rebound as speculative capital returns.

ETH may hold support at 1,500 USD, while SOL could range between 95 USD and 110 USD based on DeFi demand.

Investors should also watch CPI data and Fed signals about interest rates in mid-April. Any hawkish commentary from the Fed could put short-term pressure on BTC, ETH, and SOL.

Be Careful Catching a “Falling Knife”

Not everyone is optimistic. Nouriel Roubini has continued to express strong criticism, stating: “Bitcoin is not a safe haven during crises. It’s a speculative asset with no cash flow or intrinsic value. Trump’s tariff policies are the final catalyst for an impending bubble.

Analysts at JPMorgan recently issued a warning: “Tariff impositions may reignite inflation, forcing the Fed to maintain higher interest rates. The situation is unfavorable for risk assets like crypto.”

Another concerning factor is the slowdown in institutional capital inflows. Large investment funds have yet to show clear signs of buying after the recent drop. CoinShares reports a 40% drop in inflows, showing investors remain cautious and defensive in the crypto space.

Additionally, investors remain wary of short-term risks if the trade war escalates. If tariffs continue to expand, the threat of a global economic recession becomes real. This would place even greater selling pressure on risk assets such as ETH and SOL. CNBC and Reuters warn of stagflation risks, hurting investor confidence and adding pressure to crypto markets.

Conclusion

After the collapse of FTX in 2022, both ETH and SOL saw strong recoveries as the market gradually regained confidence. This experience demonstrates that these assets have significant rebound potential when supported by new capital inflows.

Trade war and weaker USD may boost BTC, ETH, and SOL as alternative inflation hedges to gold. While this view remains controversial, it offers another perspective for investors to weigh risks against long-term expectations.

Read more: Solana Price Plunges to Lowest Level in Three Weeks