Bitcoin Surges 3.67% as White House Tariff Shift Reduces Market Uncertainty

Bitcoin (BTC) experienced a significant price surge late on Sunday, following a period of sideways movement over the weekend. This upward trend brought the year-to-date losses down to 6.38% as of March 24, with the price of Bitcoin increasing by 3.67% over the past 24 hours. The rally was primarily driven by a report suggesting that the White House would narrow the tariffs set to come into effect on April 2, focusing on reciprocal levies against the 15 countries with the largest trade deficits with the U.S. This approach, if implemented, would reduce uncertainty in the financial markets, which have seen a nearly 20% reduction in Bitcoin millionaires due to the President’s tariff policies.

On-chain analysis indicates that the decrease in Bitcoin’s value is not a sign of widespread liquidations but rather a function of its reduced value. Long-term Bitcoin holders appear to be holding firm, as evidenced by the Bitcoin Inactive Supply Shift Index (ISSI). This metric, created by market intelligence platform CryptoQuant contributor onchained, tracks the inactive supply of Bitcoin that has been dormant for one to seven years. Despite narratives suggesting that long-term holders are capitulating, the recent supply shift primarily involves coins held for more than a year but less than two years. Additionally, the movement of supply that had been dormant for three years or more has significantly decreased since January, and holders with assets for more than five years are moving minuscule amounts of supply. These findings suggest that the majority of long-term Bitcoin holders maintain a bullish view of the leading cryptocurrency.

While recent geopolitical and macroeconomic developments may have tempered buying pressure, the long-term outlook for Bitcoin remains intact, at least according to buy-and-hold investors. Another factor to consider is the record sell-off of Bitcoin exchange-traded funds (ETFs) by Wall Street, which might constitute portfolio rebalancing rather than a shift in long-term outlook. Currently, BTC is supported by its 1-week moving average, and a break above a channel structure could potentially ignite a rally to $150,000 or even $200,000, following trends established in previous market cycles.