Bitcoin Volatility Surges 5% Amid US Trade Tariff Fears

Bitcoin (BTC) experienced significant volatility at the April 1 market open, with traders closely monitoring the potential for a breakout to $84,500. The cryptocurrency's price movements were influenced by broader market nervousness stemming from discussions around US trade tariffs. Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was making rapid fluctuations within its weekly trading range of around $83,000. This volatility coincided with a slight decline in US stocks and a retreat in gold prices from their recent all-time highs.

Market analysts and trading firms were cautious about the overall market landscape, citing macroeconomic forces and the potential impact of new trade tariffs. The Kobeissi Letter highlighted that equity markets were already pricing in a recession, with the S&P 500 down by 2% since the Federal Reserve began rate cuts in September 2024. The trading resource noted that historical data showed limited strong rebounds in equities during similar circumstances, with the S&P 500 declining by 6% in six months and 10% within a year following rate cuts during a recession.

Trading firm QCP Capital echoed these sentiments, expressing concern about the timing of potential tariffs given the current state of consumer confidence and equity markets. The firm suggested that while there was a risk of deepening recession fears and a spiral in risk assets, political theater often left room for recalibration. A softer-than-expected rollout of tariffs could offer markets a brief reprieve.

Despite the volatility, Bitcoin's price action left market observers eager for stronger signals over momentum. Fundamental support at $80,000 held firm, but traders were looking for more definitive indicators of a sustained rally. More Crypto Online noted that while there was some upside momentum, it was still within a 3-wave move, and resistance was holding strong. The trading channel suggested that the rally had more to prove before gaining significant traction.

Popular trader Jelle highlighted that BTC/USD was respecting the 50-week simple moving average (SMA) as support, currently at $76,600. Jelle expressed hope that Bitcoin would reclaim $84,500 as its next leg up, having rejected that level earlier in the day. QCP Capital reported bullish activity on their desk, with buyers taking topside exposure at $85,000-$90,000 strikes and selling downside risk at $75,000 strikes, indicating a potential bet on a firmer start to the second quarter.