Bitcoin (BTC) Investors Experience Whiplash as Trump's Tariff Policies Emerge as Key Market Driver

After dropping below $80,00 on April 3 following Trump's announcement of unprecedented trade tariffs, Bitcoin has recovered to $83,800 as of April 12.

Bitcoin investors are bracing for a dramatic shift as the world's leading cryptocurrency hovers between bullish and bearish predictions amid escalating global trade tensions.

Analysts are divided on whether Bitcoin will crash to $52,000 or soar to $200,000 by year's end, with President Trump's tariff policies emerging as a key driver of market sentiment in this rapidly changing landscape.

After dropping below $82,000 on April 3 following Trump's announcement of unprecedented trade tariffs, Bitcoin has recovered to $83,800. This temporary pause on most tariffs, announced on April 9, provided some relief to markets, though the 125% tariff on Chinese goods remains in place.

"Bitcoin dropped below $82,000 amid a sharp decline in stock indices, provoked by the introduction of unprecedented trade tariffs," noted Tracy Jin, COO of crypto exchange MEXC, in comments published by Finance Magnates .

The excitement swept the entire cryptocurrency market, forcing investors to fix losses due to fears of further escalation of trade conflicts. As a result, major cryptocurrencies such as Ethereum, BNB, and Litecoin also experienced significant price drops. However, the market recovered quickly, with Bitcoin rebounding to $84,000 on April 9.

This recovery follows a period of turbulence that saw Bitcoin test support at $74,000, a level which, if breached, could open the door to a deeper correction toward $70,000-$74,000.

The cryptocurrency recently completed a "double bottom" pattern on the hourly timeframe, which saw prices fall from above $83,000 to around $74,000 in just two days before rebounding.

Bitcoin has since stalled around the $84,000 mark, which serves as a key psychological barrier and the 38.2 Fibonacci level. A break above this point could clear the way for a continuation of the uptrend, possibly targeting the next resistance at the 50 Fib level, around $88,000.

However, if sellers regain control and push the price below the double bottom support at $74,000, it could open the door for a deeper correction towards the $70,000-$74,000 support zone, or even lower to $52,000-$56,000, as predicted by COO of crypto exchange MEXC Tracy Jin.

"The correlation between Bitcoin and traditional markets is becoming increasingly apparent, especially during periods of uncertainty, such as the current trade tensions," Jin stated.

This will call into question the status of Bitcoin as a safe haven asset, which may lead to an even sharper outflow of funds from the ETF.

Despite these concerns, crypto trader Will Clemente remains optimistic, stating that "Bitcoin will be the fastest horse" coming out of the current drawdown. "It's a pure reflection of liquidity and no earnings; if anything, economic uncertainty/deglobalization are positive for Bitcoin," he noted.

As Bitcoin's 32% correction from its January all-time high aligns with patterns seen in previous bull market cycles, investors are left to decide whether this represents a buying opportunity or the beginning of a more significant downturn.