Bitcoin holders are experiencing renewed strain following the trade tariff announcement from US President Donald Trump, which sent ripples through global financial markets, including the cryptocurrency sphere.
Nevertheless, with Bitcoin (BTC) holders feeling the heat, certain members of the community, such as BitMEX co-founder Arthur Hayes, are seizing the opportunity to accumulate BTC at lower prices.
“Been nibbling on BTC all day, and shall continue,” Hayes shared on X on April 7 as the Bitcoin price lingered around $75,000.
Image Credit: Arthur Hayes
He also anticipated that Bitcoin’s share of the broader crypto market could increase. He projected that its current 60.5% market dominance could rise towards 70%.
Traders feel “powerless to predict Trump’s next move”
While Hayes is accumulating BTC amid the turmoil caused by tariffs, his investment company, Maelstrom, reportedly offloaded BTC in December 2024 when Bitcoin approached its all-time high of nearly $100,000.
In a blog post titled “Trump Truth,” Hayes had foreseen a significant crypto downturn following Trump’s inauguration in January, predicting a conflict between market optimism regarding his crypto policies and the practicalities of implementing those policies.
Related: Michael Saylor’s Strategy halts Bitcoin purchases despite dropping below $87K
“The refrain from Bitcoin advocates to always hold and buy the dips is really testing the resolve of hodlers,” commented Petr Kozyakov, co-founder and CEO of the payments infrastructure platform Mercuryo.
Bitcoin price over the past year. Image Credit: CoinGecko
“Both amateur retail traders and the giants of finance feel equally unable to second-guess Trump’s next steps,” he added.
He noted that many traders are lingering on the sidelines, assessing whether the market has been oversold. Despite short-term volatility, Kozyakov maintains an optimistic view of Bitcoin’s long-term prospects as “the new digital gold.”
“Traders are cautiously biding their time, seeking opportunities to re-enter the market and considering if there is evidence of overselling.”
Kozyakov is not alone in envisioning a bright future for Bitcoin as “the new digital gold.” ARK Invest founder Cathie Wood is also optimistic about Bitcoin in comparison to gold, asserting in February that the “substitution” of gold for Bitcoin has already taken place.
Jack Dorsey warns Bitcoin will falter without payment use case
Despite the bullish sentiment expressed by Hayes and Wood, some figures in the crypto community have warned that Bitcoin requires more than just a narrative as a store of value to stay relevant.
Jack Dorsey, former CEO of Twitter and a notable crypto entrepreneur, expressed doubt about Bitcoin’s potential to thrive solely as a store of value.
“If it [Bitcoin] ends up being just a store of value and nothing more, I don’t believe it will remain relevant,” Dorsey stated during a recent podcast episode.
Jack Dorsey speaking during a podcast episode. Image Credit: YouTube
To maintain its relevance, Dorsey emphasized the need for Bitcoin to retain its payment functionality:
“Otherwise, it’s just something you purchase and forget, only to utilize in emergencies or when you wish to liquidate. If it doesn’t evolve into a payment solution and establish an everyday use case, it risks becoming increasingly irrelevant. And that would be a failure in my eyes.”
Despite its volatility, often viewed as a significant barrier to its use as a payment method, Bitcoin has remained a major payment asset on platforms like BitPay in 2024. Additionally, some jurisdictions have positioned Bitcoin as a payment tool in global trade.
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