TLDR
- With trading settling around $82,000 on March 31, 2025, Bitcoin hit a recent low of $81,300, marking a two-week slump.
- Trump's proposed tariffs, potentially affecting 25 countries, are rattling the nerves of investors holding risk assets.
- On-chain activity points to a massive transfer of 4,000 BTC, valued at $332 million, to the Kraken exchange, suggesting potential sales activity.
- Goldman Sachs adjusted its forecast for a US recession upwards, predicting a 35% chance over the next year, compared to its earlier 20% estimate.
- The crypto market as a whole witnessed a $250 billion contraction in value recently, with altcoins taking even harder hits.
Bitcoin's price finds itself under relentless downward pressure, dipping below the $82,000 threshold as market apprehensions about trade tariffs under the Trump administration heighten.
Touching $81,300 briefly in early trading, Bitcoin hits a near two-week low, continuing a downtrend that has eaten into earlier gains.
Investors are on edge as President Trump considers slapping reciprocal tariffs on 25 countries, with The Wall Street Journal hinting these may hit 20% per country.
Trump is expected to shed light on his tariff plans by April 2, targeting crucial market sectors and stirring global economic uncertainty.
The anxiety surrounding the trade policies drowns out the initially positive outlook from Trump's prior Bitcoin reserve efforts, as markets see these tariffs as potential disruptors.
Bitcoin's recent decline erased nearly 40% of its value from its peak during Trump's January inauguration, highlighting its vulnerability to broader economic shifts.
Compounding the market's anxiety, Goldman Sachs has upped its recession probability estimates for the US, noting a 35% chance, inflated from the former 20%.
Citing uncertainties over tariffs, sustained inflation, and eroding consumer and business confidence, Goldman Sachs revised its recession outlook.
Further unsettling Bitcoin traders is on-chain data, with 4,000 BTC, roughly $332 million, being moved to Kraken, often a prelude to sales.
The wider crypto sphere endured comparable setbacks with the overall market dropping $250 billion in value, now standing at $2.75 trillion per CoinGecko.
Ethereum, the runner-up in the crypto rankings, fell 1.5% to $1,809.93, losing 19.2% in March and hitting a 16-month nadir.
XRP slipped 3.5% to $2.10, undoing gains following the SEC's dropped case against Ripple, alongside Cardano dropping 3.4% and Solana maintaining its ground.
Technical Analysis
Chart patterns observed by technical analysts are raising eyebrows. Bitcoin, alongside heavyweights like S&P 500 and Nasdaq, is nearing a 'death cross' pattern indicative of an imminent bearish push.
Such technical formations, where short-term averages fall below long-term ones, have some analysts debating whether this is a low point before a rebound.
Bitcoin’s Current price dynamics exhibit strong ties with traditional stock markets. Notably, the S&P 500 shaved off about $2 trillion in market value over three trading sessions last week.
Market pundits, including economist Peter Schiff, have criticized the 'digital gold' narrative during Bitcoin's downturn, as gold ascends to new peaks above $3,090. Bitcoin’s Crypto analyst Ali Martinez pointed to alarming trends, highlighting a nearly $1 trillion decline in global money supply over the past fortnight.
Among bullish perspectives, some suggest a rally is on the horizon with expanding global liquidity.
Yet, they omit the fact that the Global Money Supply has diminished by roughly $1 trillion over the last two weeks! #Bitcoin $BTC Martinez further noted significant selling pressure from Bitcoin miners, who offloaded over 2,400 BTC, valued at approximately $220 million.
Fresh US PCE data revealing ongoing inflation stokes fears that monetary policy will stay stringent, posing hurdles for risk assets like Bitcoin. https://t.co/FVwzeiKzQW pic.twitter.com/whEwEuG65K
— Ali (@ali_charts) March 30, 2025
With April around the corner, traders are fixated on Trump's tariff announcement. The policy specifics may either fuel ongoing bearish trends or offer reprieve if less harsh.
Maisie boasts a seasoned career as a Crypto & Financial news journalist, having contributed to Moneycheck.com, level-up-casino-app.com, and Computing.net, currently leading Blockfresh.com as Editor in Chief.
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