Bitcoin Price- Is Bitcoin the Safe Haven Amid US Economic Struggles?
Bitcoin Price– Traders had hoped for a last-minute resolution to prevent the U.S. from implementing 104% tariffs on Chinese imports, but the White House confirmed tariffs would begin on April 9. Peter Navarro, President Trump’s trade adviser, emphasized that tariffs were “not a negotiation,” leading to a market downturn. As a result, the S&P 500 closed on April 8 with a 1.6% loss, reversing earlier gains.
This decline raised concerns about Bitcoin’s (BTC) ability to maintain its bullish momentum, especially with the worsening macroeconomic conditions. Between April 2 and April 7, the S&P 500 dropped by 14.7%, bringing Bitcoin to retest the $75,000 level—the lowest in over five months. With escalating U.S. debt issues, there is growing uncertainty about the broader market’s direction.
President Trump, in a statement with Israeli Prime Minister Benjamin Netanyahu, hinted that the trade war might continue with “permanent tariffs” while also opening the door for negotiations. This uncertainty has caused delays in IPOs and mergers, as well as sidelined leveraged loans and bond sales, as noted by Yahoo Finance.
US Fiscal Challenges Could Drive Bitcoin’s Growth
While the short-term correlation between Bitcoin and the stock market remains strong, Bitcoin could potentially benefit from the U.S. fiscal issues. Rising U.S. Treasury yields—4.28% on April 8—signal growing concerns about the nation’s $9 trillion in maturing debt. The situation could weaken the U.S. dollar and increase Bitcoin’s appeal, particularly as a hedge against inflation.
As Michael Gapen, Morgan Stanley’s chief U.S. economist, stated, “only a recession would change the calculus,” which could result in earlier and more significant interest rate cuts. This scenario, coupled with a potential dollar devaluation, might encourage traders to look to Bitcoin as a store of value.
With the U.S. Federal Reserve facing limited tools to prevent inflation while avoiding a recession, Bitcoin could see a shift in momentum. Investors may increasingly view the cryptocurrency as a safe haven in a time of global uncertainty, especially if trade tensions continue.
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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