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Bitcoin slipped under the $82,000 support, and the Nasdaq Composite is on track for its largest one-day percentage drop since March 2020. Stock and crypto traders are grappling with the aftermath of U.S. President Donald Trump’s tariff announcements. The ripple effects of reciprocal tariffs have created uncertainty across financial markets.

Trump Tariffs Impact Bitcoin and Crypto

U.S. crypto stocks saw a significant correction following President Trump’s tariff announcements. The move, which aims to reshape trade relations, has left both crypto and stock traders facing heightened volatility.

“NASDAQ Composite drops 5.8%, on track for its biggest one-day percentage drop since March 2020.”

The Fear & Greed Index currently reads 25, signaling “Extreme Fear.” This level of market sentiment reflects uncertainty surrounding the broader economic landscape. Bitcoin briefly dropped to $81,211 before rebounding above the $82,000 support. Historically, Bitcoin has weathered larger crashes, with institutional investors and whales stepping in during periods of market distress.

Bitcoin Traders React to Tariff Announcements

Recent data shows Bitcoin whales, holding between 1,000 and 10,000 BTC, and wallets containing between 100,000 and 1 million tokens, are accumulating during the price correction. Whale accumulation is generally considered a bullish sign, but Bitcoin’s current rangebound price action challenges this trend.

Despite institutional capital inflows into U.S.-based spot ETFs, Bitcoin’s response to the tariff announcements remains relatively muted. Nevertheless, BTC continues to maintain crucial support at $82,000.

Bitcoin Price Forecast

Bitcoin is consolidating below a critical resistance level at $85,000. If upward momentum persists, BTC could test $85,519, representing a potential 4% gain from its current price. Further resistance lies at $90,000 and the 50% Fibonacci retracement level of $93,172.

Technical indicators suggest caution. The RSI currently sits at 43, below the neutral level, while the MACD displays red histogram bars above the neutral line, indicating bearish momentum. If Bitcoin closes below $82,273 on the daily chart, it could signal the start of a downward trend.

What Derivatives Traders Expect from Bitcoin

Data from derivatives platforms reveals optimism among traders. Despite market uncertainty, traders are opening long positions, betting on a rise in Bitcoin’s price. Metrics such as the long/short ratio on Binance and OKX exceeding 1, along with a 71% overnight surge in options volume, suggest bullish sentiment.

Sidelined buyers should closely monitor derivatives activity before entering the market.

Experts Predict Bitcoin’s Path Forward

Market experts have weighed in on Bitcoin’s performance amid the tariff announcements. Maksym Sakharov, Co-Founder and Board Member of WeFi, noted that while the tariffs are seen as a negotiation strategy, inflation and fiscal debates in Washington could further complicate market recovery. Sakharov emphasized the importance of resolving the debt ceiling, which could impact the U.S. Treasury’s ability to meet financial obligations.

Sergei Gorev, Head of Risk at YouHodler, highlighted the bearish sentiment in American stock markets and its influence on cryptocurrencies. Gorev explained that investor uncertainty is evident in the ETH-to-BTC ratio and the dominance of BTC’s market capitalization. He advised caution until the S&P 500 index regains its position above the 200-day moving average.

Disclaimer: This article is for educational purposes only and does not constitute investment advice.

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