Trump’s Tariffs Trigger Volatility — Will Bitcoin Rebound?

Michael Saylor Declares Bitcoin Most Interesting Asset in the World

Crypto Markets are facing volatile waves in the wake of tariffs recently announced by President Donald Trump, leading to a rapid drop in global equities and an instant rise in Bitcoin trading volume.

With BTC hovering right above pivotal support levels and technicals hinting at a sell signal, traders are zeroing in on whether Bitcoin (BTC) might dip below the $79,000 mark, opening up storage opportunities for these savvy traders. 

Trump’s Tariffs Shake the Markets—Bitcoin Reacts Fast

Surprise tariffs laid down by Donald Trump sent ripples around the world- every market fell, and so did crypto. CryptoQuant reports that over 18,930 BTC were unloaded by short-term holders soon after the news broke. This increased selling pressure and lowered market capitalization to nearly $2.65 trillion.

The situation has turned bearish and thus forced BTC down towards the critical $81,000 support zone, whereby analysts anticipate a deeper correction towards $80,000. If broken, a new bearish template may emerge; however, history seems to always suggest that such periods are followed by massive recoveries. 

Technical Outlook: Bearish Crossover Brewing

As the 50-day and 200-day MAs appear poised for the bearish crossover, a historic sign of seller superiority may remain in play, at least for the near term. Presently, price action is getting caught in an equally bullish and bearish squeeze, probably tightening enough to spring in any direction.

Nonetheless, analysts at Titan of Crypto observe a falling wedge being built and typically consider a bullish reversal. If inflation data continues to ease, especially with Trueflation slowing down CPI and Core PCE, BTC might get back to critical resistance levels in May 2025. 

Will Liquidity Fuel the Next Bitcoin Bull Run?

As per Coinvo, the correlation between Bitcoin and Global Liquidity is nearing all-time highs, and with a parabolic “rise” in global liquidity, many Bitcoin bulls have begun to expect the next phase of Bitcoin’s macro bull cycle.

This further garners support with on-chain signals- a very rapid spike in buying pressure seen on Bybit, which may indicate that whales could be positioning ahead of a recovery.

On April 3, U.S. long-term government bond yields were reported to fall near a six-month low, further indicative of heightened investor fears about an escalating global trade war and the weakening U.S. dollar. It had briefly dipped below 4.0% on the 10-year Treasury note, down from about 4.4% a week before, showing a rush to safety. When is the right time to buy the dip for Bitcoin? 

Michael Saylor’s Bullish Bet Adds to Market Confidence

Michael Saylor recently doubled down on his bullish take as one of Bitcoin’s most vocal advocates: “Bitcoin makes you the most interesting. It’s the most volatile because it’s the most useful”. Such yearning talk among crypto investors becomes louder, confirming Bitcoin’s worth albeit with short-lived market instability. 

Short-Term Price Prediction: Will BTC be below $79K before the Rebound?

BTC is poised to test the $79,000-$80,000 zone over the next few days, confirming the bearish pattern and risking stop-loss hunts across major exchanges. But here is the icing on the cake: the very same dip could serve as an excellent re-entry position for long-term investors.

If there is a return of buying pressure, especially from institutions, BTC could attest to the $81K mark in days and could be in action toward $85,000 by early May. Thereafter, breaking out above the $90,570 short-term holder realized price, as CryptoQuant points out, will be the cherry on top to confirm the initiation of a new bull leg.

Short-Term Pain, Long-Term Gain?

While the immediate outlook for Bitcoin’s price seems shaky, macroeconomic data across the board, on-chain signals, and liquidity expansion seem to suggest a cautiously optimistic picture. If BTC hangs onto the $ 78K-$ 79 K range, it could spring higher into new all-time highs sometime in 2025.

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