Bitcoin Price Outlook: US Trade Tariffs Could Push BTC to $71K
Bitcoin Price– Bitcoin (BTC) is currently facing significant risks due to “higher than expected” US trade tariffs, which could lead to a potential drop to $71,000. Charles Edwards, the founder of Capriole Investments, warned that the economic environment, marked by escalating tariffs, is putting Bitcoin under pressure.
After President Trump announced new global trade tariffs on April 2, Bitcoin (BTC) reacted far worse than US stocks, falling as much as 8.5% in a single day. In contrast, the S&P 500 closed 0.7% higher. Edwards noted that business expectations in the US are reflecting high levels of uncertainty, similar to those seen in 2000, 2008, and 2022. This has historically been a warning signal for market instability.
Edwards referenced the Philadelphia Fed Business Outlook Survey (BOS), which recently dropped below 15 for the first time since 2024. This level of pessimism, Edwards points out, was also seen during the 2000, 2008, and 2022 crises—periods that saw major economic downturns. While the BOS data may not always be reliable, Edwards emphasized the importance of taking it into account given the current “very high risk” environment.
Bitcoin’s Key Levels to Watch: $91K or $71K?
For Bitcoin’s next move, Edwards highlights $91,000 as a key resistance level. If Bitcoin can close above this mark, it could signal a bullish trend. However, if the price fails to hold above $91K, a potential dip into the $71K zone could occur, with a rebound likely. Edwards also noted that the Federal Reserve is loosening financial policy, which could play a significant role in Bitcoin’s future price movements.
An influx of M2 money supply is expected soon, which historically leads to major Bitcoin price increases. Analyst Colin Talks Crypto predicts a rebound in Bitcoin’s price as early as May, driven by this influx.
In conclusion, Edwards suggests that the combination of trade tariffs, macroeconomic conditions, and the potential for further quantitative easing could result in Bitcoin’s price volatility. Investors are urged to keep an eye on the $91K and $71K levels as key indicators for the next move.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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