Bitcoin Bulls Defend $80K Support as 'World War 3 of Trade Wars' Crushes US Stocks

Bitcoin avoided the extreme volatility that rattled traditional markets on April 4, maintaining support above $82000 while U.S. equities suffered record losses.

Bitcoin is showing strength above key support at $82,400 as traders digest a volatile morning session in the U.S. markets. The S&P 500 and Nasdaq Composite opened lower, extending a two-day loss of $3.5 trillion in market cap.

The Kobeissi Letter describes the new tariffs imposed by the U.S. on goods from China as the "World War 3 of trade wars."

The post adds that the tariffs will likely have a minimal impact on inflation but could slow down the recovery from the 2022 bear market.

The market cap of the Nasdaq Composite has decreased by $3.5 trillion in just two days, which is the worst performance since March 2020.

The S&P 500 and Nasdaq Composite futures fell sharply on Tuesday morning.

Earlier in the Asian session, crypto traders witnessed a significant price drop for Bitcoin, wiping out nearly $2,500 in gains from the previous day.

As of 07:15 (GMT+2), Bitcoin was trading at $82,100, showing a recovery from the morning lows of $79,600.

On the other hand, U.S. stock futures indicated a triple-digit opening loss for the Dow, while both the S&P 500 and Nasdaq futures were down by more than 1%.

The broader cryptocurrency market showed mixed movements, with ETH trading at $2,726, showing a slight increase, while SOL encountered some selling pressure, leading to a 2% decline.

In the previous session, Bitcoin encountered resistance at the $84,700 level, encountering selling pressure after touching this point. However, traders noted that a double-bottom formation at the $76.5K zone may have signaled the bottom for the current bear market, according to Rekt Capital.

According to Chainalysis data, the U.S. represents the third largest source of outflows to foreign crypto exchanges, suggesting traders may be moving their Bitcoin to take advantage of arbitrage opportunities or to avoid potential tax implications.

According to Benzinga, the odds of a Fed rate cut by May have increased to 40% as traders digest the mixed signals from the March jobs report and CPI data.

Despite the strong jobs report, which saw an unemployment rate fall to 3.8% and an increase in non-farm payrolls by 236,000, the broader market panic has shifted focus to the potential risks of a recession.

As equities continue to struggle, Bitcoin’s stability is becoming increasingly apparent, further reinforcing its role as a macro hedge in the current economic climate.input: A chaotic scene unfolded in the U.S. markets on Tuesday, with major stock indexes set for steep losses at the open and the Nasdaq set for its worst two-day performance since the early stages of the pandemic.

The S&P 500 and Nasdaq Composite were both down 3.5% at the open, extending losses from a two-day period that saw a collective market cap decline of $3.5 trillion—the worst since 2020.

The Kobeissi Letter described the new U.S. tariffs on goods from China as the "World War 3 of trade wars."

"Sadly, it seems like none of the tariffs will have a meaningful impact on inflation. They will mainly serve to slow down the recovery from the 2022 bear market, which is already in progress," the post stated.

The market cap of theNasdaq Composite has decreased by $3.5 trillion in just two days, which is the worst performance since March 2020.

The S&P 500 andNasdaq Composite futures fell sharply on Tuesday morning.

Earlier in the Asian session, crypto traders witnessed a significant price drop for Bitcoin, wiping out nearly $2,500 in gains from the previous day.

As of 07:15 (GMT+2), Bitcoin was trading at $82,100, showing a recovery from the morning lows of $79,600.

On the other hand, U.S. stock futures indicated a triple-digit opening loss for the Dow, while both the S&P 500 andNasdaq futures were down by more than 1%.

The broader cryptocurrency market showed mixed movements, with ETH trading at $2,726, indicating a slight increase, and SOL encountering some selling pressure, leading to a 2% decline.

In the previous session, Bitcoin encountered resistance at the $84,700 level, encountering selling pressure after touching this point. However, traders noted that a double-bottom formation at the $76.5K zone may have signaled the bottom for the current bear market, according to Re