Bitcoin's Price Surges 5.1% as U.S. Trade Policies Shift

Bitcoin's price experienced a dramatic week, with significant fluctuations driven by the evolving trade policies of the U.S. President. The cryptocurrency's value dropped to as low as $74,700 on Monday, reflecting investor anxiety over the ongoing trade war. However, a 90-day pause on most tariffs announced by the president on Wednesday provided some relief, allowing Bitcoin to recover and climb back to around $83,800 by Friday. This recovery represented a 5.1% increase over the past 24 hours. Other major cryptocurrencies, such as Solana and Ethereum, also saw gains, with Solana rising 8.3% to $120 and Ethereum climbing 3% to $1,550.

The volatility in Bitcoin's price was a direct response to the uncertainty surrounding the president's trade policies. The decision to impose tariffs and then subsequently pause them created a rollercoaster effect in the markets. Initially, investors were spooked by the prospect of escalating trade tensions, leading to a sell-off in risk assets, including Bitcoin. However, the pause in tariffs provided a glimmer of hope, allowing investors to regain some confidence and push the price of Bitcoin higher.

The impact of the president's trade policies extended beyond the cryptocurrency market. Stock indices on Wall Street also experienced significant swings, with the S&P 500 ending the week up 5.6%, the tech-heavy Nasdaq surging 7.3%, and the Dow climbing 5%. The University of Michigan's sentiment index fell 11% in April to 50.8, its lowest level since the coronavirus pandemic, indicating that consumers were feeling the effects of the trade war. The index showed inflation expectations reaching their highest level since 1981, as economists feared that the president's tariffs could reignite price pressures in the coming months.

Amid the market turmoil, investors sought safe-haven assets, with gold setting a fresh record of $3,263 per ounce on Friday. Bitcoin, while not yet considered a traditional safe-haven asset, has characteristics of a good store of value. According to Samir Kerbage, CIO at crypto asset manager Hashdex, Bitcoin's behavior in recent days has been better than most risk assets, and the trade war could accelerate its adoption as a store of value in the coming years. However, Kerbage also noted that Bitcoin is still relatively new in society and may take five to ten years to fully establish itself as a reliable store of value.