Bitcoin Price Analysis: BTC Plunges Towards $80,000 Following New US Trade Tariffs

Bitcoin (BTC) and the broader crypto market plummeted following President Donald Trump’s announcement of sweeping new tariffs on trade partners. The flagship cryptocurrency is down nearly 3% and trading just above the $82,500 mark, with analysts predicting a plunge below $80,000 towards $75,000 or lower. 

BTC had surged to an intraday high of $88,554 in the runup to President Trump’s Liberation Day speech. However, markets quickly turned bearish, and the price fell over 3% to $82,321. 

Will Tariffs Drive Bitcoin (BTC) To $71,000?

Bitcoin (BTC) has taken a substantial hit after President Donald Trump announced sweeping reciprocal trade tariffs on allies and trading partners. As a result, BTC plunged over 8%, indicating its vulnerability to economic policy changes compared to traditional markets. According to Charles Edwards, Founder of Capriole Investments, the tariffs are higher than market expectations and have shaken investor confidence. Edwards highlighted the Philadelphia Fed’s Business Outlook Survey (BOS), which fell below 15 for the first time since early 2024. Such readings have preceded significant economic downturns in 2000, 2008, and 2022. 

Edwards suggested that $91,000 is a key level for BTC. If the flagship cryptocurrency closes above this level on the daily chart, a strong bullish recovery could be on the cards. On the other hand, if BTC continues its current downward trajectory, it could slip below $80,000, dipping as low as $71,000 before a potential rebound. However, Capriole Investments, in a market update, stated that the BOS indicator was not always a perfect predictor but should not be ignored. 

“While no guarantee of the future outlook (this metric does have false signals), this is a data reading we have had before at very high-risk zones.”

Traders Liquidated 

BTC had surged past $88,000 when President Donald Trump announced sweeping tariffs on trading partners. While analysts were confident markets had priced in the April 2 tariffs, their true extent caused chaos, with prices dropping and triggering a domino effect of liquidations among traders as BTC went from above $88,000 to $82,000 in a matter of hours. Reports had stated that a 10% baseline tariff would be imposed on all countries, with some countries paying higher tariffs. However, according to the Kobeissi Letter, the markets assumed a 10% tariff would be applied across the board. 

“The announcement began with a WSJ report that a 10% baseline tariff would be imposed by the US. While this was true, markets took it as ALL reciprocal tariffs were 10%. However, this quickly changed as President Trump began outlining many other tariffs, well above 10%.”

Long and short traders suffered the brunt of the decline. Data from CoinGlass revealed long and short liquidations worth a staggering $487 million. 

Bitcoin ETFs Snap Outflow Streak 

Spot Bitcoin ETFs snapped a three-day outflow streak, registering over $220 million in inflows on April 2. The ETF rebound was fueled by strong inflows into Ark21Shares’ ARKB, which saw inflows totaling $130 million, and Fidelity’s FBTC, which saw inflows of $118 million. However, BlackRock’s IBIT registered substantial outflows worth $115 million. Despite this, overall sentiment remained positive. Several other ETFs also contributed to the rally, with Grayscale registering $34 million, Bitwise’s BITB added $33 million, and Franklin Templeton’s EZBC recorded just over $10 million. VanEck’s HODL and Valkyrie’s BRRR rounded up the Bitcoin ETF list with inflows worth $7.33 million and $2.69 million. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) surged past $85,000 on Wednesday during the leadup to President Trump’s Liberation Day Speech. The flagship cryptocurrency surged to an intraday high of $88,554 as bullish momentum picked up. However, markets tanked after Trump announced a slew of reciprocal tariffs, with bearish sentiment intensifying after BTC dropped to $82,000 in hours. Analysts have warned of a bigger decline if BTC dips below $80,000. 

“In crypto, sentiment remains broadly subdued. BTC continues to trade without conviction, while ETH holds the line at $1,800 in support. Across the board, crypto markets are showing signs of exhaustion, with numerous coins down 90% YTD with some shedding over 30% in the past week. Without a material shift in macro or a compelling catalyst, we don't expect a meaningful reversal. While light positioning could support a grind higher we're not chasing any upside moves until the broader macro picture improves.”

BTC’s decline is due to tariffs impacting risk appetite as investors flock to safe assets. Meanwhile, an analyst has warned BTC could witness a further crash in the short term, adding that the flagship currency must avoid these “heavy declines.” According to the analyst, BTC could substantially decline if it stays below $83,500. The cryptocurrency is currently trading at $82,109. The warning came after a bullish analysis in which he stated that BTC was completing a bullish flag pattern, predicting a rally to the upside. This ultimately happened as BTC rallied to $88,000. However, he suggested the rally marked the local top, and a decline was likely. 

Meanwhile, crypto analyst Kevin Capital predicted BTC could drop to $78,000, noting there was a bit of long liquidity in the $78,000 to $80,000 range. 

BTC rallied to an intraday high of $88,839 last Monday before settling at $87,523. The flagship cryptocurrency encountered volatility after reaching this level. As a result, it registered marginal declines on Tuesday and Wednesday, slipping below $87,000 and settling at $86,942. The price registered a marginal increase on Thursday to reclaim $87,000 and settle at $87,236. However, BTC fell over 3% on Friday as bearish sentiment returned, dropping below the 200-day SMA and $85,000 and settling at $84,422. Sellers retained control on Saturday, with the price falling below the 20-day SMA and settling at $82,704. Price action remained bearish on Sunday as BTC registered a marginal drop to end the weekend at $82,404.

Source: TradingView

BTC encountered volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price registered a marginal increase and settled at $82,511. Bullish sentiment intensified on Tuesday as BTC rose over 3%, moving past the 20-day SMA and $85,000 to settle at $85,150. The flagship cryptocurrency surged to an intraday high of $88,554 on Wednesday as markets rallied. However, it lost momentum after reaching this level and plunged over 3%, slipping below the 20-day SMA and $85,000 and settling at $82,535. The current session sees BTC down almost 1% as bears look to drive it below $80,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.