Bitcoin Surges 7% Despite Tariff Uncertainty, Hits $84,408

On April 14, the global market experienced significant fluctuations due to evolving tariff policies and the anticipated monetary stance of the Federal Reserve. Following a tumultuous week, US equities demonstrated notable recovery, with the S&P 500 surging by 5.7%, the Dow posting a gain of 4.95%, and the Nasdaq rising by 7.29%. The Big Seven Tech Index excelled, climbing 8.95%, significantly bolstered by Nvidia’s impressive 17.62% rise for the week. Meanwhile, the cryptocurrency market confronted volatility; Bitcoin initially plummeted to nearly $74,000 under safe-haven pressures but bounced back to peak past $86,000 after positive adjustments in tariffs. It currently trades at $84,408, reflecting a weekly gain nearing 7%, while Ethereum has not mirrored this rebound effectively. Market dynamics also pressured the US Dollar Index, which fell beneath the 100 mark, evidencing a multi-year low, amidst declining oil prices and surging gold demand. Despite positive market corrections, lingering tariff uncertainties persist, calling for astute investment strategies this week, particularly surrounding Trump’s tariff updates and the Fed’s communications.

Bitcoin has shown remarkable resilience, surging past $86,000 despite the market volatility and uncertainty surrounding tariff policies. The cryptocurrency's price has been on a rollercoaster ride, dropping over 2% to $83,502 during Asian trading hours on Sunday due to conflicting signals from the Trump administration regarding trade policies. President Trump's statements on tariffs have added to the market's uncertainty, with Commerce Secretary Howard Lutnick indicating that new sector-specific tariffs on electronics will be imposed within the next two months.

Despite these fluctuations, institutional interest in Bitcoin remains strong. BlackRock, the world's largest asset manager, reported net inflows for a sixth consecutive quarter into its spot digital asset-focused funds. MicroStrategy, under the leadership of Michael Saylor, has also indicated plans to resume buying Bitcoin once a nearly two-week pause ends. The company's total holdings of 528,185 BTC reflect nearly $8.6 billion in unrealized gains, a 24% increase on their investment.

Technical analysts are closely monitoring key support levels around $81,000, with a potential breakout below this level likely to trigger liquidations across leveraged assets. Bitcoin has been trading within a defined range, momentarily touching $86,000 on April 13, an eleven-day high. However, the 200-day exponential moving average (EMA) around $85,000 presents significant resistance to this rebound, challenging bullish sentiment.

Trader Peter Brandt suggested that the recent comeback from lows was "more corrective than impulsive," indicating the possibility of further consolidation before a clear trend emerges. Analyst Rekt Capital noted a positive divergence on daily timeframes and a strong signal in Bitcoin’s relative strength index (RSI), which has typically accompanied upward price reversals. This divergence suggests that Bitcoin is developing another higher low on the RSI while forming lower lows on the price.

The current macroeconomic environment presents an opportunity for Bitcoin to demonstrate its durability as a store of value. While trade war worries have caused significant losses in traditional markets, Bitcoin's 22% drop from its January record of $109,000 compares favorably to the larger altcoin market, which has dropped nearly 33% of its value since December 2024. Blockstream CEO Adam Back highlighted that macroeconomic constraints from a prolonged trade war could make Bitcoin more appealing as a store of value, potentially competing with gold.

The Federal Reserve's approach to interest rates will likely have a significant impact on Bitcoin's performance in the coming weeks. Market expectations for rate cuts now point toward June instead of May due to inflationary issues related to the new tariff policies. As traders navigate this uncertain economic terrain, Bitcoin's resilience and potential as a store of value will continue to be tested.