Bitcoin (BTC) faced an immediate sell-off on April 2, 2025, following President Donald Trump’s announcement of sweeping reciprocal tariffs on several major trading partners, including India, the European Union, and the United Kingdom. The new tariffs sparked global market turmoil, sending Bitcoin’s price down to as low as $82,000. Meanwhile, gold surged to new all-time highs, reflecting a shift toward safer assets amid heightened geopolitical and economic uncertainties.
Trump’s Tariff Announcement Sends Shockwaves
In his “Liberation Day” speech, Trump outlined new tariff rates as part of a strategy to correct perceived trade imbalances. These tariffs include:
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China: 34%
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European Union: 20%
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India: 26%
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South Korea: 25%
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Japan: 24%
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United Kingdom: 10%
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Taiwan: 32%
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Vietnam: 46%
Trump’s focus on India, accusing the country of imposing high tariffs on U.S. goods, escalated tensions and led to fears of retaliatory actions. This aggressive stance ignited widespread concerns about global economic stability.
Bitcoin’s Struggles and Gold’s Rise
The Bitcoin market responded sharply, with the price dropping by more than 7%, erasing gains from earlier in the week. Bitcoin’s price fell from $87,400 to $82,200, and has since found some support around $82,000. However, the technical outlook remains bearish, as Bitcoin faces resistance at $84,498. If BTC fails to reclaim this level, it could see further downside toward $80,000.
Meanwhile, investors flocked to gold, driving its price past the $3,150 mark, confirming the market’s shift toward risk-off assets. The surge in gold’s price highlights Bitcoin’s weakening narrative as a safe-haven asset, especially amid Wall Street’s growing influence on the cryptocurrency market.
Technical Indicators and Forecast
Bitcoin’s price is currently hovering near $83,000, but several technical indicators suggest continued bearish pressure. The Bollinger Bands indicate low volatility, with the price nearing the lower band around $80,871. A break below this could trigger further losses. The MACD indicator is also showing bearish momentum, with the signal line crossing below the MACD line, suggesting additional downside risks.
The VWAP at $82,886 points to a key liquidity zone, with buyers attempting to defend this level. However, if Bitcoin fails to reclaim the 20-day moving average at $84,498, it could fall toward $80,000. On the upside, a close above $84,498 might spark a short-term rebound, but with declining volume and weak bullish momentum, any rally could face significant resistance.
Conclusion
Bitcoin’s price remains in a precarious position following Trump’s tariff announcement, with key technical levels holding the market’s attention. While Bitcoin has found some support around $82,000, the broader market uncertainty and bearish technical indicators suggest that BTC could face further challenges in the short term. Investors should keep an eye on key resistance levels and broader macroeconomic developments, as these could determine Bitcoin’s next move. Meanwhile, gold’s rise to new highs underscores the growing demand for safer investments as global tensions escalate.
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