Bitcoin Faces Downward Pressure as Trump Tariff Fears Loom
Bitcoin’s price struggles amid concerns over potential harsher tariffs from the Trump administration, following cooler-than-expected U.S. inflation data. The cryptocurrency dipped below $80,000, reflecting broader market anxieties.
Bitcoin Price at Risk Amid Trump Tariff Concerns
Bitcoin could continue to decline as cooler-than-expected U.S. inflation data has sparked fears that President Trump might implement harsher tariffs. This move could potentially bring inflation back up in the long run. On Friday, Bitcoin (BTC) dropped below $80,000, and was still down about 1.6% over the last 24 hours. The U.S. Consumer Price Index (CPI) for March showed inflation falling to 2.4%, slightly better than the 2.5% forecasted by analysts. Normally, lower inflation reduces the need for rate hikes, which tends to benefit risk assets like crypto and stocks. However, the positive CPI reading failed to offset concerns about potential tariff increases.
Bitcoin Flat as China Raises Tariffs on US Goods
Bitcoin remained flat as China announced a new 125% tariff on select US imports, signaling continued parity in the ongoing trade conflict. The tariff adjustment, effective immediately, was announced early Friday and follows Washington’s recent escalation of import taxes on Chinese goods. Chinese officials framed the measures as a defensive response to unilateral economic aggression, describing US actions as ’hegemonic’ and ’bullying.’ Gold prices spiked, while oil declined. No direct impact on cryptocurrencies was reported, but the broader market sentiment could be affected by escalating trade tensions.
Dollar Index Falls to Lowest Level in 3 Years, While BTC Remains Steady
The Dollar index (DXY), which measures the strength of the U.S. dollar against a basket of other currencies, has dropped below the 100 mark for the first time since April 2022. The index has fallen over 10% from its recent high of 110 and is now at its lowest level in three years. Investor sentiment continues to shift away from U.S. assets, putting further downward pressure on the dollar, as trade tensions between the U.S. and China intensify. Just before press time, China announced an increase in tariffs on U.S. goods, raising the total levy to 125% from 84%. Meanwhile, Bitcoin (BTC) remains steady amidst the fluctuating market conditions.
S&P Endorses Bitcoin as a Store of Value
The rating agency Standard & Poor’s has endorsed Bitcoin as a store of value. Financial institutions no longer view Bitcoin as a threat but as a technological breakthrough. It is described as a liquid asset with a finite quantity, decentralized, geopolitically neutral, and allowing protection against inflation and depreciation of national currencies. The S&P analyst believes this investment thesis is gaining traction among institutional investors and governments, with notable examples being El Salvador, Bhutan, and the United Arab Emirates. European lawmakers are also interested despite some hesitations.
New Hampshire and Florida Advance State-Owned Bitcoin Reserve Bills
Efforts to create state-owned Bitcoin reserves are gaining traction in the United States, with Florida and New Hampshire making significant progress this week. On April 10, New Hampshire’s House of Representatives narrowly approved House Bill 302 (HB 302) with a vote of 192–179. The bill, which previously passed the Commerce and Consumer Affairs Committee, has now moved to the state Senate for further deliberation. If approved by the Senate, it will go to Governor Kelly Ayotte for final approval. HB 302 allows the state treasurer to invest up to 10% of state funds in a combination of digital assets and precious metals. However, the bill enforces strict guidelines, specifying that only cryptocurrencies with a minimum market capitalization of $500 billion are eligible for investment. Currently, Bitcoin (BTC) is the only digital asset that meets this threshold.
