Bitcoin’s Wild Ride: Will Tariffs Send It Plummeting to $71K? 🤔💸

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Ah, Bitcoin. The digital currency that’s more unpredictable than my Aunt Edna after a few too many glasses of Merlot. Just when you think you’ve got a handle on it, along comes a new set of U.S. trade tariffs to throw everything into chaos. According to Charles Edwards, we’re looking at a situation that feels eerily reminiscent of the 2022 bear market bottom. You know, the one where everyone was clutching their wallets and crying into their pillows? Yeah, that one. Meanwhile, analysts are whispering sweet nothings about Bitcoin potentially hitting $71,000 if the economic pressure keeps cranking up. Because who doesn’t love a good rollercoaster ride? 🎢

US Tariffs Put Pressure on Bitcoin

So, on April 2, President Trump decided to play Santa Claus, but instead of gifts, he delivered global reciprocal trade tariffs. And what did Bitcoin do? It took a nosedive, dropping a staggering 8.5% in a single day. Meanwhile, U.S. stocks were like that one friend who always manages to bounce back after a bad breakup. Edwards pointed out that U.S. business expectations are now at levels reminiscent of 2000, 2008, and 2022—years that are basically the financial equivalent of a horror movie marathon.

Consider this as tariffs come in higher than expected.

The Philly Fed Business Outlook survey is showing expectations today comparable to 2000, 2008, and 2022.

How long until the Powell printer starts humming?

Discussed in @capriole_fund’s update last week.

— Charles Edwards (@caprioleio) April 3, 2025

And just when you thought it couldn’t get worse, a chart from the Philadelphia Fed Business Outlook Survey (BOS) showed business confidence plummeting below 15. That’s right, folks—15! If that number were a student, it would be the one hiding in the bathroom during finals week. Edwards cautioned that while BOS data isn’t always accurate, it’s historically been a reliable indicator of when to start panicking about your investments.

“If the tariff war escalates or corporate margins start to shrink, we could see further downside,” he warned. Thanks for the pep talk, Charles. 😬

Key Price Levels to Watch

For all you Bitcoin traders out there, keep your eyes peeled on the $91,000 mark. If Bitcoin can manage to close above $84,000, it might just be a sign that we’re not all doomed. But if prices keep plummeting, we could be looking at a test of the $71,000 support zone. You know, the place where dreams go to die—or, in this case, potentially rebound. Fingers crossed! 🤞

Capriole Investments is convinced that the U.S. macroeconomic environment will ultimately decide Bitcoin’s fate. No pressure, right?

Can U.S. Liquidity Boost Bitcoin Up?

Now, let’s talk about U.S. monetary policy. Could a shift in this area be the magic potion Bitcoin needs? The Federal Reserve has already started easing its tight policies, which has everyone speculating about a return to quantitative easing (QE). Because nothing says “stability” like printing more money, am I right?

Charles Edwards posed a question that’s been on everyone’s mind: “How long until the Powell printer starts humming?” This refers to the possibility of an increased money supply, which has historically sent Bitcoin’s price soaring. So, if M2 liquidity rises, we might just see Bitcoin start to recover as early as May. Or, you know, it could just crash and burn. Who knows? 🤷‍♂️

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2025-04-03 13:07