Bitcoin's price struggles have been attributed primarily to the US-led tariff war, but several factors contributing to its weakness existed prior to the implementation of these tariffs. Despite a 2.2% gain on April 1, Bitcoin has failed to surpass $89,000 since early March. Investors had already shown diminishing interest in Bitcoin before tariffs were introduced and had inflated expectations surrounding strategic Bitcoin purchases by the US Treasury. While Bitcoin ETFs saw significant inflows even during the trade war, it is evident that institutional demand remained robust despite the geopolitical tensions. Additionally, changes in inflation rates and job market data point to a more risk-averse macroeconomic environment. With relatively stable inflation and weakening job market dynamics, investors have gravitated toward safer assets, dampening Bitcoin's price potential. Overall, the trade war's impact is real, but it is compounded by underlying issues, including unrealistic expectations among traders and favorable market conditions for traditional financial instruments over cryptocurrencies.

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