Bitcoin (BTC) Price Drops as Trump's Trade Tariffs Create Uncertainty in Global Financial Markets

Bitcoin is once again facing a period of uncertainty as new U.S. trade tariffs add pressure to an already volatile market.

Bitcoin (BTC) is once again facing a period of uncertainty as new U.S. trade tariffs add pressure to an already volatile market. According to Charles Edwards, this situation looks similar to the 2022 bear market bottom, raising concerns about what’s next for BTC.

The cryptocurrency took a hit after President Donald Trump announced global reciprocal trade tariffs on April 2. While U.S. stocks managed to recover, BTC dropped as much as 8.5% in a single day.

This downturn comes as no surprise to those following Edwards' analysis. In a recent post, the Capriole Investments founder highlighted that U.S. business expectations are now at levels seen in 2000, 2008, and 2022—years tied to major market downturns.

"This is as tariffs are coming in hotter than expected. Phily Fed Business Outlook survey shows expectations today comparable to 2000, 2008 and 2022. How long until the Powell printer starts humming? Discussed in @capriole_fund's update last week," said Edwards.

A chart from the Philadelphia Fed Business Outlook Survey (BOS) showed business confidence falling below 15, a sign of economic strain. According to Edwards, while BOS data isn't always accurate, it has historically indicated high-risk periods for financial markets.

"If the tariff war escalates or corporate margins start to shrink, we could see further downside," he added.

Key Price Levels To Watch

For Bitcoin traders, the key level to watch in the short term is $91,000. If Bitcoin manages a daily close above the $84k level, it could be a strong bullish signal. However, if prices continue to drop, Bitcoin may test the $71,000 support zone, where a significant rebound could occur.

Capriole Investments suggests that the U.S. macroeconomic environment will ultimately determine Bitcoin's next major move.

Can U.S. Liquidity Boost Bitcoin Up?

Perhaps a shift in U.S. monetary policy might be a game-changer for Bitcoin. The Federal Reserve has already started easing its tight policies, raising speculation about a return to quantitative easing (QE).

"How long until the Powell printer starts humming?" asked Edwards.

This question is crucial as it relates to the possibility of an increased money supply, which has historically driven Bitcoin's price higher. According to Capriole Investments' analysis, a new cycle of M2 liquidity could directly influence Bitcoin's price movements, potentially leading to a recovery starting as early as May.