- Bitcoin dropped 7%, fears of economic slowdown, and the dollar weakened.
- Arthur Hayes sees tariffs boosting Bitcoin, gold demand rises.
- Bitcoin’s support at $79,900–$81,160, bullish bounce above $84,000 possible.
President Donald Trump’s latest tariff announcements triggered widespread market volatility, including over $450 million in crypto futures liquidations and a sharp downturn across assets, even as BitMEX co-founder Arthur Hayes presented a contrarian bullish case for Bitcoin.
The sell-off followed confirmation of Trump’s new trade measures: a 25% levy on foreign-made cars reportedly effective April 3rd, a minimum 10% import tariff on U.S. trading partners starting April 5th, and higher country-specific tariffs affecting ~60 nations from April 9th.
The White House indicated China faces a 34% new tariff, pushing its total effective rate to 54%, as part of efforts to reduce trade imbalances.
The immediate market reaction saw Bitcoin plummet 7%. Global stock markets were also hit hard, the U.S. dollar weakened, and the 10-year Treasury yield dipped to 4% (its lowest since October), potentially signaling anticipation of Federal Reserve easing to counteract economic pressures.
Hayes’ Contrarian Take: Why Tariffs Could Boost Bitcoin
Despite the chaos, not everyone is running scared. Crypto veteran Arthur Hayes took to social media, expressing a contrarian view: “Some of y’all are running scared, but I love tariffs,” he tweeted, sharing charts that showed how the economic turbulence could ultimately benefit Bitcoin.
Hayes reasoned that a weakening dollar and the potential for increased central bank money printing (Quantitative Easing or QE) to stabilize economies could drive demand for Bitcoin and gold as hard assets in the medium term. He suggested global imbalances would eventually force central banks toward QE.
Bitcoin Technical Outlook: Bounce or Further Decline?
Bitcoin showed a slight bounce today (April 4th), but its short-term trend remains uncertain. Analysis from MoreCryptoOnline suggests a bearish scenario remains likely following the peak earlier on March 24th. This could lead to declines towards key support levels between roughly $79,900 and $81,160.
Alternatively, a short-term bullish bounce is possible. If Bitcoin were to break decisively above $84,000, it would signal a corrective rally, reaching the $84,860 to $85,724 zone. However, analysts caution such a bounce could be short-lived without sustained momentum above those levels.
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