TLDR
- After Trump's sweeping 10% tariff on imports was unveiled, Bitcoin's price stalled at $83,421.50.
- Trump's revamped trade strategy aims high with reciprocal tariffs, singling out China (54%), Japan (24%), and the EU (20%).
- Bitcoin experiences a slowdown in trading activity, hitting a five-month low, as the market adopts a wary stance.
- Enduring belief among long-term holders is evident, as spending hits its lowest ebb since mid-2021.
- For Bitcoin to regain footing, it needs to breach $85,000, else it risks slipping to a lower support at $80,301 if the bearish momentum persists.
Post-Tariff announcement by Trump, Bitcoin's price dips to $83,400 reflecting its vulnerability to wider market upheavals amidst intensifying global trade friction.
Trump revealed a concrete shift in the U.S. trade paradigm, opting for a 10% blanket tariff kicking in on April 5, 2025.
This new tariff policy takes a hard stance, hitting nations erecting trade barriers against the U.S. with heftier charges, effective April 9, 2025.
The reworked policy strikes hard on China with 54%, Japan standing at 24%, the European Union at 20%, India at 26%, and Vietnam at 46%.
A hefty 25% charge on cars and core auto components produced abroad will be enforced from April 3, 2025.
Market Response to Tariff News
Bitcoin slipped by 0.8% to $83,421.50 after the tariff news, a reaction resonant of broader fears of escalating trade conflicts.
American stock index futures took a dive as Asian markets opened Thursday, mirrored by declines across foremost Asian indices.
Crypto-centric stocks took a tumble in after-hours trading Wednesday. Coinbase especially dipped by 7.5%, accompanied by similar drops in Marathon Digital and Riot Platforms.
Strategy, previously known as MicroStrategy, observed their stocks lose 4.6% during post-market trading.
Altcoins mimicked Bitcoin's downward movement. Ethereum weakened by 1.2% to $1,832.57, and XRP slightly slid by 0.2% to $2.0687.
Significant losses for Solana at 3.2%, Cardano falling 1.8%, and Polygon retreating 3.5%. Meme coins like Dogecoin fell 1%, and $TRUMP decreased by over 7%.
Long-term Investor Behavior
Despite battling price volatility recently, prevailing indicators hint at Bitcoin holders' optimism for future potential.
Bitcoin's trading frequency, reflecting its turnover, fell to a new low, signifying holders' reluctance to part with their assets.
This drop in transaction speed hints at a prevailing caution among investors, which has somewhat dampened Bitcoin's price resurgence.
Mid-term holders have achieved increased returns, showing growing trust among investors, with many evolving into long-term holders.
Spending reduced to levels unseen since mid-2021 indicates durable holders' resistance to selling amid uncertain markets.
Price Outlook and Key Levels
At the time of writing, Bitcoin’s The current price teeters at $83,403, narrowly missing the vital $85,000 threshold.
Bitcoin hit a high of $88,500 earlier but couldn't sustain, flagging after Trump's tariff disclosure. Prices have steadied above $80,000 since.
For recovery to occur, Bitcoin Bitcoin needs to reclaim $85,000 for buoyancy. A rebound requires surpassing $89,800, paving the way for potential higher ascents.
Failing to clear $85,000, and sustained low trading might push prices back to a key support at $80,301, negating the positive outlook into possible bear territory.
Meanwhile, gold soared to unprecedented heights in Asian trading on Friday, reflecting investors’ gravitation toward stable assets amid economic instability.
