- Bitcoin’s price steadies at approximately $76,000 on Wednesday following a 3.59% drop the day before.
- BTC may experience volatility as Trump’s tariffs are implemented on Wednesday, with China’s response coming on Thursday.
- A report from K33 Research indicates that, despite market turmoil, Bitcoin has demonstrated relative stability compared to the broader equity market.
As of Wednesday, Bitcoin (BTC) is stabilizing around $76,000 after a 3.59% decline the previous day. The cryptocurrency could see volatility as President Trump’s tariffs take effect on Wednesday, while retaliatory measures from China are expected on Thursday. According to a report from K33 Research, Bitcoin has remained relatively resilient amidst a general market panic.
Bitcoin exhibits relative stability against the backdrop of the global equity market
On Monday, Bitcoin’s price experienced significant fluctuations, closing positively as a reaction to some misleading news about a potential 90-day delay in the implementation of tariffs by the Trump administration after dropping to a year-to-date low of $74,508. However, BTC continued its slide, decreasing by 3.59% the following day, with the price settling around $76,000 by Wednesday.
The K33 Research report on Tuesday revealed that while the markets were panicking, Bitcoin showed relative strength as the S&P 500 faced its most significant daily losses since the onset of the COVID-19 pandemic.
The report elaborates that the effects of tariffs on the global economy and U.S. equities are part of a broader concerning sell-off trend. Since the announcement, the Hang Seng index has dropped by 14%, the Nikkei by 6%, and Eurostoxx by 11%. Initially, BTC displayed strength amidst the first wave of selling but experienced a sharp decline on Sunday and Monday, closely following the equities while still slightly outperforming them. Even gold’s value has declined in the aftermath of the announcement, highlighting a global scramble for liquidity.
Performance since April 2 (Foreign indices USD Adjusted) chart.
The report indicates that the situation remains precarious and uncertain. With the tariffs going live on Wednesday and China’s retaliatory duties following on Thursday, concerns about global consumption are warranted.
“In their current configuration, these tariffs are likely to disrupt global consumption, justifying the market’s sharp decline and heightening recession concerns,” states a K33 analyst.
The analyst further added: “Given the contentious nature of tariff implementations, we anticipate swift negotiations that may lead to reduced tariffs. Moreover, if equity indices continue their declines, financial instabilities could arise, prompting central banks and governments into crisis management, resulting in fiscal and monetary stimulus to maintain economic stability. In this context, Bitcoin’s scarcity presents a compelling case for investors.”
Notably, despite a 32% decline since Trump’s inauguration—a pattern that mirrors the downturn from March to August 2024—BTC still trades higher than it did on election day, a stark contrast to equities.
The graph below illustrates that, while BTC has outperformed gold since the election, the lead has been narrow and the directional trends over the past months have significantly diverged. The strength of Bitcoin since the election may be attributed to various U.S. policy decisions.
“Executive Orders concerning a Strategic Bitcoin Reserve and Regulatory Clarity establish a solid foundation for BTC in the medium to long term, and we believe current price levels present an attractive buying opportunity,” the report concludes.
Performance since November 4 (USD Adjusted) – April 7, 13:00 CET chart.
Additionally, a report from QCP Capital on Wednesday notes that markets currently find themselves torn between two expectations: either a Trump put or a Federal Reserve (Fed) put, both of which are not expected to materialize immediately.
The report indicates that with steady unemployment and inflation beginning to show upward trends, the Fed is likely to keep current interest rates steady for the foreseeable future. This stands in contrast to market predictions, which suggest four cuts in 2025, including the possibility of cuts occurring outside of the regular meeting schedule.
“BTC is consolidating around the $75k level, although this could change if equities experience another dramatic decline,” states the QCP report.
Bitcoin Price Outlook: BTC bears gather momentum, eyeing the $73,000 mark
Bitcoin’s price faced rejection at the $85,000 resistance on April 2 and has since declined by 10.55%, hitting a year-to-date low of $74,508 by Tuesday. As of Wednesday, it is hovering around $76,000.
If BTC continues its downward trajectory, it could potentially test the next support level at $73,072.
The Relative Strength Index (RSI) on the daily chart is currently around 36, indicating strong bearish momentum that supports a negative outlook.
BTC/USDT daily chart
Should BTC rebound and close above its daily resistance at $85,000, it might extend its recovery towards the important psychological level of $90,000.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, designed to function as a form of currency. This virtual payment system is not controlled by any single individual, group, or entity, eliminating the need for third-party involvement in financial transactions.
Altcoins refer to any cryptocurrency other than Bitcoin; however, some view Ethereum as a non-altcoin since it’s from these two cryptocurrencies that forking occurs. If that is the case, then Litecoin is deemed the first altcoin, which was forked from the Bitcoin protocol and is considered to be an “enhanced” version of it.
Stablecoins are cryptocurrencies intended to maintain a stable price, with their value supported by a reserve of the underlying asset. To achieve this, the value of a stablecoin is typically pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or market demand. The main purpose of stablecoins is to facilitate investor transactions in cryptocurrencies while providing a stable store of value due to typical market volatility.
Bitcoin dominance refers to the ratio of Bitcoin’s market capitalization to the combined market capitalization of all cryptocurrencies. It offers insight into Bitcoin’s appeal among investors. A high BTC dominance often precedes and characterizes a bullish market, where investors favor investing in more stable and higher market capitalization cryptocurrencies like Bitcoin. Conversely, a drop in BTC dominance generally indicates that investors are reallocating their assets towards altcoins in search of higher returns, often triggering substantial altcoin rallies.