Bitcoin faces a tough road ahead, with recent U.S. trade tariffs threatening to push the cryptocurrency down to $71,000. This new analysis from Charles Edwards, the founder of Capriole Investments, warns that higher-than-expected tariffs could create “very high-risk” conditions for Bitcoin.
On April 2, after President Trump’s announcement of reciprocal trade tariffs, Bitcoin dropped by up to 8.5%, while U.S. stocks, like the S&P 500, ended the day in the green. This divergence hints at Bitcoin’s vulnerability to U.S. economic policies.
Tariffs Create Uncertainty for Bitcoin’s Future
Edwards points out that U.S. business expectations are now at a level of uncertainty not seen since 2000, 2008, and 2022, according to the Philadelphia Fed’s Business Outlook Survey. As Edwards shared with his followers on X, this type of uncertainty could lead to market turmoil similar to past crypto crashes. “While no guarantee of the future outlook, this is a data reading we have had before at very high-risk zones,” he wrote, suggesting the potential for a significant dip in Bitcoin’s price.
This forecast is tied directly to U.S. macroeconomic moves and tariff wars. Edwards stressed that if the tariffs escalate or corporate margins begin to shrink, Bitcoin’s fate could hang in the balance.
Traders Focus on $91K Bitcoin Price Point for Bullish Reversal
Bitcoin’s price movement now hinges on the $91,000 level. If Bitcoin manages to close above this threshold, it would signal a potential bullish reversal. However, if it fails to hold that line, a drop to $71,000 could see a sizable bounce. As Edwards notes, a close above $91K would indicate strength, but a dip could open the door to a rebound, especially as global liquidity continues to shift.
At the time of writing, Bitcoin is sitting at $81,604.
