Bitcoin’s price may plummet to $71,000 due to heavy tariff pressures from the US, predicts Charles Edwards, founder of Capriole Investments, a quantitative Bitcoin and digital assets fund. After President Trump’s announcement of reciprocal global trade tariffs on April 2, Bitcoin’s price felt a sharper sting than US stocks, dropping by 8.5% for the day. The S&P 500, on the other hand, climbed 0.7% higher at the close of the Wall Street trading session.
Edwards indicates the business outlook in the US is under considerable stress, with current perspectives mimicking the shaky times of 2000, 2008, and 2022. In the Philadelphia Fed’s Business Outlook Survey, the business outlook for the year dipped below 15 for the first time since early 2024, reminiscent of the biting crypto drop of late 2022 when Bitcoin prices dwindled to $15,600.
While Edwards admits that the Business Outlook Survey data might occasionally broadcast misleading signals, he emphasizes that it should not be neglected. He states, “If the tariff war escalates significantly beyond current expectations or corporate margins start to fall,” Bitcoin could experience a considerable slump.
A critical point of interest for investors should be the $91,000 mark. If the tariff fallout pushes Bitcoin below this level, an expectation of a consequential dip to $71,000 begins. Cointelegraph suggests a glimmer of hope for risk assets like crypto as global liquidity is projected to increase. In the U.S., the Fed has already loosened monetary policy. A notable influx is expected in the M2 money supply, which historically triggered a substantial surge in Bitcoin’s price.