Bitcoin (BTC) is under heavy pressure following President Donald Trump’s announcement of new trade tariffs, raising concerns among investors about the possibility of a $71,000 drop. According to Charles Edwards, founder of Capriole Investments, Crypto is experiencing a “very high risk” situation due to these tariffs.
On April 2nd, Bitcoin’s value fell nearly 8.5% in response to the tariff announcement, in sharp contrast to the S&P 500, managing a small gain of 0.7% on the same day. Edwards emphasized that the uncertainty surrounding US business expectations is reminiscent of previous economic downturns observed in 2000, 2008 and 2022.
He said the Philadelphia Fed’s business outlook survey was less than 15 for the first time since early 2024.
In his latest market analysis, Edwards warned that if tariffs exceed current expectations, it could lead to an increase in Bitcoin price volatility. He urged caution, particularly when tariff situations escalate or the company’s profit margins began to decline, while acknowledging that research data could provide misleading signals.
Capriole Investments has identified $91,000 as a key level of resistance in Bitcoin, suggesting that daily proximity above this mark could indicate a bullish trend. Conversely, if Bitcoin cannot hold above this threshold, a reduction in the $71,000 range can cause a significant rebound.
Market analysts are monitoring US liquidity trends as the Federal Reserve begins to ease strict financial policies. This shift is a harbinger for Crypto, and with forecasts of M2 money supply inflows, it could support Bitcoin price recovery as early as May.