Bitcoin Price Risks Drop to $71K as Trump Tariffs Impact US Business Outlook
Bitcoin (BTC) faces heightened risk of falling to $71,000 amid pressures from US trade tariffs, as warned by Charles Edwards, founder of Capriole Investments. Edwards highlighted that the recent increase in tariffs, announced by former President Donald Trump, has triggered a more significant drop in Bitcoin compared to US stocks. Bitcoin’s fall of 8.5% on April 2 stands in stark contrast to the modest 0.7% rise in the S&P 500.
The US business outlook, reflected in the Philadelphia Fed's Business Outlook Survey (BOS), shows a sharp decline to levels not seen since 2024's start, signaling heightened uncertainty comparable to crises in 2000, 2008, and 2022. Edwards noted that these risks could lead Bitcoin to test key levels, with a potential "sizable bounce" if it reaches $71,000.
Further analysis suggests that macroeconomic factors, including the US Federal Reserve's monetary policy, will play a pivotal role in determining Bitcoin's trajectory, with a close above $91,000 signaling a bullish outlook. Meanwhile, an anticipated influx of global liquidity could provide some support for Bitcoin's recovery in the coming months.
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