Bitcoin Holds Strong Above $84,000 Amid Tariff Optimism and Softening Dollar: Bearish Sentiment Persists
Bitcoin (BTC) is maintaining its position above the $84,000 mark, showing resilience with a modest gain of over 1% in the past 24 hours
Live BTC/USD Chart
Bitcoin (BTC) is maintaining its position above the $84,000 mark, showing resilience with a modest gain of over 1% in the past 24 hours despite broader market uncertainty. This stability comes as analysts debate whether recently announced US tariffs will ultimately benefit or harm the BTC/USD price trajectory.
Global markets have been rocked by the Trump administration’s declaration of broad tariffs—10% on all nations beginning April 5, with higher rates of 34% for China, 20% for the European Union, and 24% for Japan. Trading site The Kobeissi Letter notes that the initial market response has been clear: April 3 marks “the largest single-day point loss for the Nasdaq 100 in history.”
Hayes Sees Tariffs as “Good for BTC” Despite Short-Term Volatility
BitMEX co-founder Arthur Hayes has expressed optimism about the impact of these tariffs on Bitcoin’s medium-term prospects. “Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC,” Hayes stated in a recent social media post.
Hayes identified several factors supporting his bullish outlook:
- The weakening of the US Dollar Index (DXY) as overseas investors sell off US stocks to “bring money home”
- Potential weakening of the Chinese yuan (CNY) in response to the 65% effective tariff, which might drive Chinese investors toward Bitcoin as a store of value
- Market expectations for Federal Reserve rate cuts and potential resumption of quantitative easing (QE) to offset negative economic impacts
Jeff Park, head of alpha strategies at Bitwise Invest, has similarly argued that Trump’s tariffs will ultimately benefit Bitcoin, suggesting that in a “world of weaker dollar and weaker US rates…risk assets in the US will fly through the roof beyond your wildest imagination.”
US Treasury Yields Drop as Dollar Weakens
On April 3, the yield on the 10-year Treasury note momentarily dipped to 4.0%, its lowest level in six months and dropped dramatically from 4.4% only one week prior. As investors respond to mounting worries about the worldwide trade war, this fall points to significant purchasing demand for US government debt.
Although Bitcoin’s economic worries at first seem negative, lower fixed-income returns usually boost allocation to other assets, including cryptocurrency. Simultaneously declining to 102, the US Dollar Index is the lowest level in six months, which could inspire other countries to investigate substitute stores of value.
Chief Investment Officer Axel Merk of Merk Investments pointed out that tariffs produce a “supply shock,” therefore limiting the availability of products and services and perhaps encouraging inflation should interest rates drop. This situation may reduce the attraction of fixed-income investments and direct money toward other assets like Bitcoin.
BTC/USD Technical Indicators Show Mixed Signals as Sentiment Worsens
Technical indicators of Bitcoin’s immediate future are delivering contradictory signals even if its stability above $84,000 is now rather consistent. Indicating quite negative market attitude, the CryptoQuant Bull Score Index has dropped to an alarming level of 10—much below the crucial barrier of 40.
Furthermore showing higher activity among long-term Bitcoin holders is the Spent Output Age Bands indicator, which indicates over 1,057 BTC aged between 7 to 10 years recently transferred. This exercise implies possible selling pressure from seasoned investors who have kept their investments for years.
Not all technical signs, nevertheless, suggest down. Analyst Javon Marks of cryptocurrencies notes that Bitcoin’s daily Relative Strength Index (RSI) has stayed at its breakout level akin to past events before notable price rises.
Bitcoin Price Outlook: Support Levels and Market Outlook
Bitcoin is now selling at 24.7% below its all-time high of $109,000 achieved in January, indicating continuous fall. To prevent more market downturn, analysts underline that Bitcoin must stay in important support channels—especially the $82,000 level that has maintained despite growing global economic anxiety.
Although short-term volatility is still a cause for worry, long-term structural elements keep Bitcoin as an alternative asset favored. Along with other alternative investments like gold, which has reached all-time highs with a $21 trillion market capitalization, Bitcoin might gain from major capital inflows should even a tiny percentage of the global $140 trillion bond market search higher returns elsewhere.
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