Bitcoin faces challenges following the announcement of higher-than-expected U.S. trade tariffs, which has caused the cryptocurrency to react more negatively than U.S. stocks. On April 2, BTC/USD dropped by up to 8.5% while the S&P 500 increased by 0.7%. Analysts suggest that this downturn is reflective of significant uncertainty in U.S. business, as indicated by the Philadelphia Fed’s Business Outlook Survey, which shows expectations similar to those seen in 2000, 2008, and 2022 during periods of economic distress. Charles Edwards, founder of Capriole Investments, highlighted the importance of U.S. macroeconomic factors in determining Bitcoin's future price trajectory. A key price level for Bitcoin post-tariff is $91,000, with a potential dip to $71,000 likely to prompt a rebound. Despite current pressures, a positive shift in U.S. liquidity and an anticipated influx of money supply could provide a silver lining for Bitcoin and other risk assets in the coming months.

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