Bitcoin's price has shown mixed reactions to recent tariff policies, reflecting evolving market dynamics:
Immediate Drops & Recoveries
Bitcoin initially fell sharply post-tariff announcements (e.g., dropping to $82k from $88k on April 2 tariffs), but later rebounded to $85.5k on April 15 amid hopes of tariff relief for auto imports. Earlier, a 90-day tariff pause on April 9 caused a 6% surge to $81k.
Policy-Driven Volatility
Trump’s tariffs introduced unexpected instability, challenging Bitcoin’s traditional safe-haven narrative. However, its volatility remained lower than equities in some cases, with analysts noting its potential as a hedge against trade-driven inflation.
Strategic Shifts
Reports suggest the U.S. might use tariff revenue to buy Bitcoin for reserves, signaling institutional recognition of its value amid economic uncertainty. This could influence long-term demand dynamics.
Technical Outlook
Bitcoin currently tests key levels near $84k-$85k, with analysts warning of potential declines to $75k if trade tensions escalate further. However, its role as a "digital gold" may strengthen if tariffs weaken traditional markets.
