Bitcoin 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. Meanwhile, analysts believe that bitcoin will hit $71,000 if economic pressure continues to grow.
US Tariffs Put Pressure on Bitcoin
Bitcoin took a hit after President Donald Trump announced global reciprocal trade tariffs on April 2. While US stocks managed to recover, BTC dropped as much as 8.5% in a single day. Edwards pointed out that US business expectations are now at levels seen in 2000, 2008, and 2022 years tied to major market downturns.
A chart from the Philadelphia Fed Business Outlook Survey (BOS) showed business confidence falling below 15, a sign of economic strain. Edwards noted that 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 warned.
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).
Charles Edwards posed a key question: “How long until the Powell printer starts humming?” This refers to the possibility of an increased money supply, which has historically driven Bitcoin’s price higher.
Thus, analysts believe that if M2 liquidity rises, Bitcoin could start recovering as early as May.
