Bitcoin’s Wild Plunge: Will Tariffs Send Crypto Down the Drain? 😱

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My dear fellow enthusiasts of all things cryptographic, it appears that our old friend Bitcoin could be heading for a spot of bother yet again. The U.S. has delivered cooler-than-expected inflation figures—2.4%, if you please!—and while one might assume this to be cause for a jolly good celebration, rumors abound that President Trump is itching to fling fresh tariffs at anything that moves. Fancy that!

In a bit of a Friday fiasco, Bitcoin (BTC) took a gentle tumble below $80,000 and found itself languishing 1.6% in the red over the last 24 hours. Even the fresh CPI data, better than forecast, couldn’t quite inject that much-needed bubbly optimism. Lower inflation typically means fewer rate hikes—yippee in most cases—yet here we are, watching our dear BTC stifle a dignified cough and continue its descent.

And lo, did the wider markets do cartwheels of delight at this positivity? Quite the opposite! The S&P 500 and Nasdaq took a nosedive, presumably flinging themselves out of bed with a dramatic crash of -3.4% and -4.3%. Meanwhile, the total crypto market cap has decided to imitate a ballroom dancer in reverse, dropping 2.8% in a bout of collective nervousness.

Tariffs, dear chums—tariffs are the mischief-makers of the moment. On April 9, President Trump graciously declared a 90-day pause on certain tariff hikes and introduced a jolly 10% reciprocal tariff on most countries. China, naturally, received the special red-carpet treatment of a 125% tariff, presumably not to be outdone, followed by an exchange of accusations about who respects the trade norms less. One can only sigh.

This fleeting lull in the trade storm caused Bitcoin to do a brief jig up to $82,000, but it didn’t take long for the merriment to fizzle out. China retorted with an 84% tariff on U.S. goods, effectively prompting the return of those troublesome trade-war jitters. Apparently, market confidence has the constitution of a fainting goat these days, especially with that 90-day clock ticking ominously.

Adding fuel to this delightful bonfire of uncertainty, certain analysts suspect that Trump, flushed by a strong jobs report and lower inflation, could toss a few more trade grenades. The Federal Reserve, for all its fabled fireworks, looks unlikely to cut interest rates in the near future, leaving the macroeconomic stage about as stable as a unicycle on ice. Capital inflows into Bitcoin, once a hearty river of $100 billion, have dwindled to a modest $6 billion, suggesting some folks might be seeking safer harbors—or merely an afternoon nap.

If technical indicators were polite, they’d advise BTC to keep above the $80,000 threshold. But if our plucky coin fails at this line of defense, more robust support levels lurk at around $76k, $71k, and the heftier $65k. Should that last bastion crumble, we might be in for further shenanigans on the downward slope, dear friends.

Analysts remain hopeful

Naturally, not everyone is donning the black armband for Bitcoin’s fortunes. Some bright sparks aver that Bitcoin is, comparatively, holding its own rather splendidly. One might note how its seven-day realized volatility of 83% is actually lower than the S&P 500’s—who would have thought, dear old BTC possibly turning into the well-behaved cousin at the dinner table? Quite a twist!

Meanwhile, cunning on-chain detectives discovered 132 brand-new “shark” wallets, each containing more than 10 BTC, springing up in the last 24 hours—clearly, some whales (or sharks, rather) have decided to drop in for tea and crumpets. A whopping 48,575 BTC, worth a breezy $3.6 billion, has moved into accumulation wallets, marking the biggest splash since 2022. Sounds like some big fish are quietly doubling down.

Indeed, certain chart aficionados are detecting a rather friendly double bottom formation—a classic harbinger of bullishness. With Bitcoin flirting around $81k, having bounced off $79,900, who’s to say a majestic advance toward $86k isn’t in the pipeline? And should BTC gallop over $86k by the week’s close, some propose we may see $94k beckoning seductively from the horizon.

$BTC update: (Macro)

More confirmation with recent PA to validate the macro chart.

1. Any Weekly close below 78k= 4D OB
2. Any Weekly close above 86k= 94k

The 78-86k range can both be ‘Anger’ or ‘Late Anxiety’ phase. The macroeconomic data and global changes can shift…

— Ahmed (@CryptoBheem) April 10, 2025

Yet, one can’t help but notice a certain tension in the air, like a question mark dangling over a comedic stage. The U.S. and China remain in a delicate dance of tariffs and counter-tariffs, each move stirring fresh alarm among traders. Will our gallant Bitcoin charge forth to victory, or shall the tariff tempest keep it firmly on the back foot? That, dear readers, is the billion-dollar conundrum. 🤔

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2025-04-11 11:46