Bitcoin
Bitcoin: What Went Wrong?
Something has fundamentally changed in this ecosystem. A big shift in the core ethos of things. Regardless of what you think about politics in the wider world, Bitcoin itself as a network and protocol was something explicitly designed to function in a hostile environment, in an environment where politics and governments are actively antagonistic towards it.
The core value proposition of Bitcoin itself is that, as a system, it can continue functioning despite such antagonism in a hostile environment. It can be a foundation for us to build upon, with everything built upon it inheriting that resilience to some degree in the face of a well equipped antagonist.
It seems like faith in that core value proposition has almost completely evaporated in this ecosystem. Determination to build upon that foundation, and to protect its soundness at all costs, seems to have evaporated. In its place we now have cheerleading politicians, favor trading for selectively beneficial regulation, and prioritization of short term financial gain over the preservation of what makes Bitcoin valuable in the first place.
People are less concerned with the creeping web of business relationships in the mining ecosystem, which is the bedrock of Bitcoin’s foundation of openness and censorship resistance, and more concerned with whether President Trump is going to just pump our bags, or pump the bags of shitcoiners too.
We are counting our chickens before they hatched.
Bitcoin has issues regarding mining centralization, and that part of the ecosystem’s vulnerability to regulatory attacks and mandates from governments that could put at risk the ability of people to openly use the network without fear of censorship. It has issues in terms of scalability, and the ability to support enough users using the network self-custodially to actually be a viable means of protests and opting out at a large enough scale to matter to governments. The custodians people otherwise will have to use are just as regulatorily vulnerable as miners are becoming. It also has a serious privacy issue, which opens users themselves to regulatory pressure forcing them into self censorship.
Bitcoin has all of these problems, and rather than focusing on solving them so that Bitcoin can remain the resilient system that made it valuable in the first place, people are more concerned with currying political favor with the current US Presidential Administration for token policy wins and short term financial gain at the cost of major concessions that very well could seriously damage Bitcoin’s foundation.
So where did we take a wrong turn? And frankly, what the fuck is wrong with everyone?
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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Bitcoin price rebound 2.3% to reclaim the $84,100 mark on Friday, after China announced retaliatory tariffs on U.S. imports. Will BTC price trajectory decouple from US stocks?
Bitcoin holds key support as China escalates US trade war
On Friday, Bitcoin price rose 2.3% after China imposed a sweeping 34% tariff on U.S. imports, escalating global markets tensions.
This latest development intensifies fears of a prolonged trade war, sending shockwaves across traditional financial markets, prompting investors to reassess their portfolio.
Notably, China’s retaliatory measure comes just 48 hours after former President Donald Trump had introduced fresh tariffs on Chinese imports along with multiple other nations.
Drawing insights from the CoinMarketCap chart above, BTC price briefly dipped to $81,600 before rebounding above the $84,100 mark, at press time.
While BTC’s price action remains under pressure, BTC appears to be attracting more inflows, as investor look diversify from potential impact of China’s tariffs on US firms revenues.
Bitcoin’s divergence from U.S. stocks signals decoupling trend
Despite the negative sentiment surrounding the escalating trade war, Bitcoin has maintained its footing above $82,000 throughout the week. This stability contrasts with the S&P 500, which has recorded a 6% decline over the same period, closing at lower levels each day.
The divergence between Bitcoin and traditional equities suggests a potential shift in investor behavior. As U.S. stock markets falter under the bearish overhang of the ongoing trade war, Bitcoin’s relative resilience could position it as a safer store of value.
If Bitcoin price can form a steady support base around the $81,000 level, it could beging attracting hedge demand from investors looking to mitigate exposure to stock market volatility.
Bitcoin price forecast: $85K breakout ahead of $81,000 support holds
As China’s retaliatory measures introduces fresh volatility, Bitcoin price forecast signals now indicate potential for a breakout above $85,000. However, this breakout remains contingent on BTC maintaining critical support at $81,000.
The daily Bollinger Bands indicate a tightening range, with BTC currently trading near $84,009.24. The lower band at $80,927.39 reinforces strong demand at this level, while the upper band at $88,104.90 signals a possible bullish breakout if momentum strengthens.
The Nasdaq 100’s weakness further supports Bitcoin’s resilience. With major tech stocks like Apple and Cadence Design Systems (CDNS) posting losses, BTC’s ability to hold firm above $82,000 suggests it could be decoupling from U.S. equities.
As investors look to avoid the impact of China’s tarrifs on US firms, many investors could lean into BTC to mitigate the downside risks, potentially driving up Bitcoin prices towards $85,000.
The Relative Strength Index (RSI) stands at 47.22, reflecting neutral sentiment but trending slightly upward. A move above 50 would confirm renewed bullish momentum. Meanwhile, trading volume remains moderate at 30,140 BTC, suggesting accumulation rather than aggressive selling. If buying pressure intensifies, BTC could challenge resistance at $85,000, with a decisive break opening the door toward $88,000.
Conversely, a failure to sustain $81,000 could trigger $793 million in liquidations, amplifying downward pressure. However, given Bitcoin’s historical strength at this level, buyers remain well-positioned to defend it.
Frequently Asked Questions (FAQs)
China’s tariffs create economic uncertainty, pushing investors toward Bitcoin as a hedge, potentially increasing demand and price stability.
Bitcoin has held above $82,000 despite the S&P 500’s decline, suggesting increased investor interest as a non-correlated asset.
The $81,000 support is critical. A breakout above $85,000 could signal bullish momentum, while a drop risks mass liquidations.
ibrahim
Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bitcoin, altcoins, and the stock market continued their downward trend on Friday as the trade war between the U.S. and China escalated.
Bitcoin (BTC) price dropped to $82,000, erasing some of the gains made during the Asian and European markets. Ethereum (ETH) dropped below $1,800, while the market cap of all coins fell to $2.64 trillion.
The stock market’s performance was even worse as futures tied to the Dow Jones, S&P 500, and Nasdaq 100 indices plunged by over 3%. This means that these blue-chip indices have all moved into a correction.
Trade war escalates
Bitcoin, altcoins, and equities declined after China announced its retaliatory measures against the U.S. In a statement, Beijing said it would impose a 34% tariff on all goods imported from the U.S.
In addition, China will restrict exports of certain rare earth minerals, halt sorghum imports from U.S. companies, and add 11 American firms to its unreliable entity list.
These measures mark the most significant response to Donald Trump’s Liberation Day tariffs. Other countries, especially those in Europe, have called for negotiations to prevent the trade war from expanding.
Trump and senior officials have warned that the U.S. will deliver reciprocal tariffs on any country that retaliates. They’ve urged trading partners to lower their tariffs and non-tariff barriers instead.
Therefore, Bitcoin, altcoins, and the stock market are falling as these actions lead to higher odds of a recession. Polymarket data shows that traders have boosted their recession odds to 56%. Companies like Goldman Sachs and PIMCO have also boosted their recession odds.
These fears have pushed market sentiment into extreme territory. The CNN Money Fear and Greed Index dropped to 6, the lowest reading since the onset of the COVID-19 pandemic.
Investor pessimism intensified after billionaire and former Bond King Bill Gross warned against buying the dip. He said:
“Investors should not try to ‘catch a falling knife. This is an epic economic and market event similar to 1971 and the end of the gold standard except with immediate negative consequences.”
Bitcoin, altcoins, and the stock market fall after NFP data
Markets also weakened after the U.S. released the latest nonfarm payrolls (NFP) report. The data showed that unemployment rose to 4.2% in March, up from 4.1% in February.
The economy added 228,000 jobs, beating analysts’ median forecast of 137,000. However, the manufacturing sector, which Trump aims to protect with his tariff policy, created just 1,000 jobs.
These figures will likely have minimal impact on the Federal Reserve, which remains focused on inflation and GDP growth.
Meanwhile, the bond market is signaling expectations of lower interest rates. The 10-year Treasury yield fell to 3.89%, while the 30-year and 2-year yields declined to 4.38% and 3.5%, respectively. If the Fed cuts rates, it would likely be bullish for Bitcoin, altcoins, and the broader stock market.
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Bitcoin
Bitcoin Falls Back to $83K, XRP, SOL, DOGE Surrender Gains as China Announces 34% Tariffs on All U.S. Goods
Risk sentiment worsened during the European hours Friday after China announced retaliatory tariffs on all goods, responding to Trump’s Wednesday decision to boost the overall levy on Chinese goods to 54%.
Bitcoin, the leading cryptocurrency by market value, fell by $1,600 to $83,000, erasing the early rise to $84,600, CoinDesk data shows. Other tokens like XRP, ETH, SOL and DOGE also reversed early gains to trade largely flat on the day.
Meanwhile, futures tied to the S&P 500 and Nasdaq fell over 2% amid escalating global trade tensions.
“China’s response is not only negative for the U.S. but it is also impacting the global outlook,” ForexLive’s analyst Justin Low wrote in a market update.
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