From Digital Gold to Global Hedge: Bitcoin Weathers Tariff Storm Better Than Tech

By The Rio Times | Created at 2025-04-05 07:35:47 | Updated at 2025-04-05 21:49:36 14 hours ago

The cryptocurrency market continues to navigate volatility in the wake of major tariff announcements, with Bitcoin trading at $83,347.00 (down 0.60% over 24 hours) as of this morning.

The overall crypto market is valued at $2.69 trillion with Bitcoin dominance at 62.02%. Despite significant turbulence in traditional markets, Bitcoin has demonstrated resilience by maintaining support above the $80,000 level.

Key Price Action (24h Change)

Bitcoin (BTC): $83,347.00 (-0.60%)
Ethereum (ETH): $1,806.53 (-0.49%)
XRP: $2.13 (+0.04%)
Solana (SOL): $120.35 (-1.98%)
Litecoin (LTC): $83.80 (-0.73%)

Bitcoin Weathers Tariff Storm Better Than Tech. (Photo Internet reproduction)

Market Developments

Tariff-Induced Volatility

The crypto and equities markets experienced significant volatility after President Trump announced new tariffs on April 2, described as his “Liberation Day”.

Major stock indexes suffered their worst day since 2020, with the Dow losing almost 1,700 points.

China’s announcement of retaliatory 34% tariffs on all US imports starting April 10 further intensified market concerns.

Bitcoin initially dropped from around $88,000 to approximately $82,100 following the tariff news.

However, it has shown remarkable resilience compared to tech stocks, suggesting a potential new role as a geopolitical economic hedge.

Bitcoin Technical Analysis

Bitcoin faced multiple momentum shifts over the past 24 hours. April 4th began with a death cross on the MACD at 00:45 UTC, but bullish momentum emerged at 5:00 UTC with a golden cross.

The price hit resistance at $84,724.03 when the RSI entered overbought territory, followed by a correction that found support at $81,664.74.

Standard Chartered analyst Kendrick noted Bitcoin approaching an important technical breakout:

“A break back above the critical $85k level looks likely today, post payrolls. That opens up a move back to the $88.5k pre-tariff level from Wednesday”.

The critical resistance levels to watch are $85,000 and $88,500, with support at the March 11 low of $76,606.

ETF Flows

Bitcoin ETFs experienced mixed flows in recent days:

April 3: Net inflow of 1,941 BTC ($159.76 million), with ARK21Shares contributing significantly (1,500 BTC, $123.45 million)
April 4: Reversal with nearly $100 million in net outflows across all funds
BlackRock’s iShares Bitcoin Trust (IBIT) was the only ETF to record inflows on April 4, adding about $65 million
Grayscale’s GBTC saw the largest outflow of around $60 million

In contrast, Ethereum ETFs continued to face pressure with net outflows of 11,195 ETH ($19.93 million) on April 3, with iShares (Blackrock) accounting for 10,596 ETH ($18.86 million) of the outflow.

Altcoin Performance

Ethereum (ETH)

Ethereum has been trading between the $1,754 support and 20-day EMA ($1,928). On April 4, ETH recovered from the “Liberation Day” shock, starting at $1,790 and climbing to $1,822 by midnight.

The upcoming Pectra upgrade on May 7 is expected to boost the staking limit to 2,048 ETH, potentially affecting the asset’s value proposition.

Solana (SOL)

Solana has shown weakness, dropping 1.98% in the past 24 hours to $120.35. The coin faces mounting headwinds in April as investors grow wary of looming FTX sell-offs, with repayments of $800 million scheduled to begin on May 30.

This overhang appears to be limiting Solana’s recovery compared to other major cryptocurrencies.

Litecoin (LTC)

Litecoin is currently trading at $83.80, down 0.73% over the past 24 hours. Trading volumes remain relatively low at $436.6 million compared to other major cryptocurrencies.

Trading Volumes

Bitcoin: $42.4 billion (24h)
Ethereum: $16.1 billion (24h)
XRP: $5.0 billion (24h)
Solana: $4.8 billion (24h)
Total crypto market: $106.66 billion (24h as of April 4)

Expert Opinions

Market sentiment remains divided on crypto’s short-term direction:

BitMEX co-founder Arthur Hayes expressed optimism, stating he “loves tariffs” as he expects them to be positive for Bitcoin and gold in the medium term
VanEck analysis suggests global trade tensions are boosting Bitcoin’s role as an economic hedge, showing a decoupling from tech stocks
Byzantine General cautioned that crypto market upside would be limited due to possible tariff responses
Charles Edwards of Capriole Investments stated Bitcoin would turn bullish on a break and close above $91,000, or potentially fall to the $71,000 zone if that level fails to hold