Tariff Chaos Triggers Bitcoin Death Cross — Will BTC Revisit 2021 Prices?

Sean Williams
BITCOIN

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Bitcoin (BTC) is facing a turbulent week as global trade tariffs and ongoing economic uncertainty weigh heavily on its price. With BTC now trading around $77,113, it is struggling to maintain its bull market momentum, and recent chart patterns are reminiscent of the challenges seen in 2021. A “death cross” has now emerged on the daily BTC/USD chart, signaling the potential for further price declines.

The cryptocurrency market is in a precarious position, influenced not only by domestic policies but also by broader market trends. The impact of new US trade tariffs is becoming increasingly evident, with both traditional financial (TradFi) markets and crypto investors drawing comparisons to the catastrophic “Black Monday” of 1987 and the 2020 market crash. As the trade measures unfold, investor sentiment is at an all-time low, with the traditional Fear & Greed Index dropping to its lowest point in history.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin’s price action is showing worrying signs. BTC has fallen below key support levels, including the critical $75,000 mark, a threshold last seen in November 2024. Popular market analysts, such as Kevin Svenson, have warned that Bitcoin’s long-term bullish trajectory could be in jeopardy. The break below these levels has forced Bitcoin to revisit long-forgotten support lines from 2021, notably the $69,000 region.

In addition to the tariff-driven market turmoil, the upcoming US inflation data (CPI and PPI) could further fuel volatility. With concerns about rising prices, the Federal Reserve may soon be forced to cut interest rates to stave off a full-blown economic crisis. This potential policy shift, alongside the continued pressure from tariffs, is keeping investors on edge.

Short-term Bitcoin holders are particularly vulnerable in this environment. As panic selling mounts, many are facing substantial losses. Data from CryptoQuant shows that short-term holders (STHs) are now below the break-even point, adding to the selling pressure and exacerbating market volatility.

Also Read: Satoshi Nakamoto’s 50th Birthday: Unveiling Bitcoin’s Legacy and Mystery

As Bitcoin’s price continues to fluctuate in response to these macroeconomic factors, traders are cautious. Despite the gloomy outlook, some are still hopeful that a bottom could form soon, presenting a potential buying opportunity for long-term investors. However, the market remains volatile, and Bitcoin’s next moves will depend heavily on both the outcome of economic policies and the broader market sentiment.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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