Bitcoin Price Set for Weakest Q1 Performance in Seven Years
Bitcoin price dropped to $81,500 as global markets react to upcoming tariffs from President Trump, marking a potential weak Q1 for BTC since 2018. In contrast, gold prices surged past $3,150 per ounce, reaching historic highs.
Impact of Trump Tariffs on Bitcoin
- Trump will implement reciprocal tariffs over 20% on imports from over 25 countries starting April 2.
- Tariffs expected to affect over $1.5 trillion in imported goods by the end of April.
- BTC and altcoins have corrected over 20% since mid-January due to trade war escalations.
- Gold ETFs have seen $12 billion in net inflows while the S&P 500 declined 5% year-to-date.
- Bitcoin ETFs experienced outflows, but inflows resumed when BTC neared $89,000 in mid-March.
- Analysts suggest a drop below $80,000 could lead to BTC falling to $70,000.
On-Chain Indicators for Bitcoin
- Over 30,000 Bitcoins withdrawn from exchanges recently, indicating aggressive movement by long-term holders.
- Analyst Captain Faibik noted BTC's consolidation within a four-month falling wedge pattern may indicate an impending bullish rally.
- Faibik predicts BTC could reach $109,000 by the end of April following an upside breakout from the wedge.