Bitcoin Price Analysis: BTC Trades Below $80,000 As Markets Remain Jittery
Bitcoin (BTC) continues to experience volatility as markets remain jittery and are struggling to come to terms with the havoc and turmoil unleashed by Donald Trump’s trade tariffs. The flagship cryptocurrency is down almost 3% over the past 24 hours, although it has posted a recovery during the ongoing session.
BTC fell to a low of $74,624 earlier today after the US imposed an additional 50% tariff on Chinese goods, taking the total to 104%.
Are Trump’s Tariffs Beneficial For Bitcoin?
BTC plunged to a low of $74,624 earlier today as markets grapple with the impact of an extra 50% tariff imposed on Chinese goods. However, despite the decline, some experts believe that Bitcoin could see tremendous growth if the US Dollar continues to lose ground and loses its credibility as a reserve asset, with Bitcoin taking its place. According to crypto experts, Bitcoin could rally during the trade war despite witnessing a substantial decline over the past week.
Binance CEO Richard Teng believes that despite the risk-off sentiment dominating markets, BTC has the potential to make a strong recovery. According to Teng, while short-term macro uncertainty led investors to pull back, BTC could still recover. According to Teng, BTC’s recovery potential is tied to long-term holders who see BTC as a resilient asset during economic turmoil. Teng stated,
“This environment could also accelerate interest in crypto as a non-sovereign store of value. Many long-term holders continue to view Bitcoin and other digital assets as resilient during economic stress and shifting policy dynamics.”
Matt Hougan, Chief Investment Officer at Bitwise, echoed Teng’s sentiments, basing his arguments on a speech by Steve Miran, Chairman of the White House’s Council of Economic Advisors. Miran spoke about the effect of the US Dollar’s global reserve role and how it contributed to trade deficits. He also added that the demand for the US Dollar distorted currency markets. Hougan believes Miran is calling for the USD to drop lower, which could benefit BTC.
“In the short term, I expect dollar weakness to be good for bitcoin. My sense is that we will move from a single reserve currency (the Dollar) to a more fractured reserve system, with hard money like bitcoin and gold playing a bigger role than it does today.”
Bitcoin Could Challenge The Dollar For Global Hegemony
Donald Trump’s sweeping tariffs and the global uncertainty they have caused have convinced some analysts that Bitcoin could outlast the Dollar. Bitwise Invest Head of Alpha Strategies Jeff Parks stated in a post on X,
“Higher chance Bitcoin survives over the Dollar in our lifetime after today. The first time the thought hit me and didn’t feel like a theory but an actual truth to grapple with.”
Bitwise CEO Hunter Horsley echoed a similar sentiment, stating that trust in the US Dollar was waning, and other currencies were viewed as weaker investments, implying Bitcoin was the only option.
“You're a nation that doesn't trust the US right now. You want to store value in something other than US assets. But you don't want to own other nations' currencies/debt/assets because they're even weaker, and you expect they'll debase it. So you could buy gold. But how do you get it shipped to you and in your possession? You look around and you see it: an asset that can't be debased, is controlled by no country, and that you can take into your possession immediately. You wind up buying Bitcoin.”
Could Strategy Be Forced To Sell Its Bitcoin?
Strategy (previously MicroStrategy) could be forced to sell some of its Bitcoin to meet impending financial obligations. The company disclosed in a regulatory filing that if it fails to secure financing it could sell its BTC to meet financial obligations. BTC’s price substantially impacts Strategy’s ability to settle its debts since most of its assets are in Bitcoin. Strategy expects to announce an unrealized loss of $6 billion for Q1 2025 despite receiving a $1.69 billion tax benefit.
The company is under tremendous financial strain and has around $8 billion in debt. It also pays $35 million in annual interest payments and $150 million in yearly dividends. Its software business is struggling to generate revenue to support obligations. If Strategy cannot raise additional funds, it could sell its BTC at a loss. However, Wu Blockchain sought to allay fears, pointing out the company had issued similar warnings in the past as standard risk disclosure practice.
“The rumor has it that Strategy filed an 8-K form with the SEC on April 7, stating that if the price of Bitcoin continues to fall, the company may be forced to sell its Bitcoin holdings to repay debts. It was found that this statement is a standard risk disclosure practice, and it also appears in the 10-Q report for Q1 2024 and reports for 2023 and earlier, and is not a special case.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) continues to experience volatility despite recovering during the ongoing session. The flagship cryptocurrency remains pinned below $80,000, down over 2% during the past 24 hours. BTC’s recent decline has brought it at a crucial juncture as it tests crucial support levels. Short-term momentum for the cryptocurrency looks weak, although long-term on-chain metrics could help understand if the correction has more downside or if buyers will step in.
BTC started the previous week with a marginal increase before registering an increase of over 3% on Tuesday to move past the 20-day SMA and $85,000 and settle at $85,152. BTC surged to an intraday high of $88,624 on Wednesday as bullish sentiment intensified. However, it lost momentum after reaching this level and dropped over 3%, slipping below the 20-day SMA and $85,000 and settling at $82,525. The price recovered on Thursday despite selling pressure, rising 0.82% and settling at $83,199. Buyers retained control on Friday as BTC rose almost 1% and settled at $83,828.
Source: TradingView
However, bearish sentiment returned over the weekend as BTC fell 0.48% on Saturday and settled at $83,423. Bearish sentiment intensified on Sunday as BTC plunged over 6%, slipping below $80,000 and settling at $78,301. Markets faced considerable volatility thanks to growing uncertainty. As a result, BTC fell to a low of $74,392 before surging past $80,000. However, it slipped below this level to settle at $79,164, ultimately registering an increase of 1.10%. Selling pressure returned on Wednesday as BTC fell almost 4% on Tuesday and settled at $76,283. The current session sees BTC up nearly 1%, recovering from a low of $74,624, as buyers look to push it to $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.
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