TLDR
- Bitcoin price has fallen to around $81,500, marking 7 consecutive days of lower lows
- Trump’s threatened tariffs, including “Liberation Day” on April 2, are spooking markets
- Goldman Sachs raised 12-month recession probability from 20% to 35%
- Despite price drops, institutional investors like MicroStrategy continue buying
- Federal Reserve’s monetary policy stance could significantly impact future Bitcoin prices
Bitcoin has slipped below the $82,000 mark as investors show concern over US President Donald Trump’s plans for new tariffs. The cryptocurrency is now trading around $81,656, recording its seventh day in a row of lower prices.
BTC Price
This downward trend comes as Trump prepares to announce a fresh wave of 25% tariffs on cars imported to the US. The president has repeatedly called April 2 “Liberation Day,” when he plans to assign “reciprocal tariffs” to various countries.
These tariff announcements have already impacted traditional markets. Stock futures have moved into negative territory, with DOW futures dropping 206 points and S&P 500 futures down 0.56%.
Bitcoin’s price movements have closely followed these equity markets. This pattern shows how connected cryptocurrency has become to broader financial trends.
The tariff threats extend beyond just automobiles. Trump has also mentioned possible tariffs on the pharmaceutical industry and has warned about new import duties on Russian oil “at any moment.”
These warnings came after Trump expressed disappointment with Russia over delays in reaching a ceasefire deal in the Ukraine conflict. He specifically mentioned a potential 25% tariff on Russian oil imports.
Market watchers note that Bitcoin’s decline stems from a combination of factors. There is weak demand in spot markets as well as traders avoiding new positions in Bitcoin futures markets.
Economic Data
Recent economic data has added to market concerns. Last week’s Personal Consumption Expenditures (PCE) data showed higher-than-expected inflation.
Consumer confidence has also taken a hit. March data from the Conference Board showed the monthly confidence index at a 12-year low.
Goldman Sachs recently raised its 12-month recession probability from 20% to 35%. Their analysts cited “lower growth, sharp recent deterioration in household and business confidence, and statements from White House officials.”
Institutional Buying
Despite these negative price trends, institutional investors continue to buy Bitcoin. MicroStrategy CEO Michael Saylor recently hinted at more Bitcoin purchases in a social media post saying the asset “Needs even more Orange.”
Marathon Digital has launched a $2 billion stock sale to fund new Bitcoin purchases. Other firms like Metaplanet continue to add to their holdings.
Data from CryptoQuant shows Bitcoin inflows to accumulation addresses are still rising throughout the month. This indicates long-term holders are continuing to add to their positions.
Federal Reserve policy could also affect Bitcoin’s future price. Crypto trader Arthur Hayes believes the Fed will trigger a Bitcoin price boom in April.
Hayes pointed to Federal Reserve Chair Jerome Powell’s recent comments that “inflationary aspects of tariffs are transitory.” This suggests the Fed might maintain easier monetary conditions despite tariff-related inflation.
There has been tension between Trump and Powell over interest rates. Trump has called for immediate rate cuts, while Powell prefers a wait-and-see approach.
Some analysts, like 10x Research founder Markus Thielen, predict a Bitcoin price rebound. He cites Trump’s softening stance on tariffs and the Fed’s signals about looking past short-term inflation.
As Bitcoin approaches the $80,000 level, investors are watching closely. Some technical analysts suggest it could drop further, with predictions ranging from just below $80,000 to as low as $65,635.
The cryptocurrency market seems caught between negative short-term pressures and long-term institutional investment. The outcome of April 2’s “Liberation Day” tariff announcements may prove crucial for Bitcoin’s next major price move.
