Bitcoin price drop: Will Trump’s trade tariffs push BTC to $71K, or can a rebound above $91K save the market with market uncertainty at its highest?

Bitcoin (BTC) is facing significant downside risk following the announcement of new U.S. trade tariffs, with experts predicting a potential drop to $71,000. The digital asset, currently hovering around $82,859, has shown a sharp reaction to macroeconomic developments, signaling uncertain times are US tariffs impacting bitcoin pricesBitcoin took a major hit after former President Donald Trump announced a series of worldwide reciprocal trade tariffs on April 2. While the S&P 500 managed to close 0.7% higher, BTC/USD plunged by 8.5% in a single day. This indicates that Bitcoin is more vulnerable to economic policy changes compared to traditional to Charles Edwards, founder of Capriole Investments, these tariffs are coming in higher than expected and are shaking investor confidence. He pointed to the Philadelphia Fed’s Business Outlook Survey (BOS), which has now fallen below 15 for the first time since early 2024. Historically, such readings have preceded significant economic downturns, as seen in 2000, 2008, and bitcoin at a critical technical levelEdwards suggests that $91,000 is a key technical level for Bitcoin. If BTC manages to close above this price on a daily chart, it would signal a strong bullish recovery. However, if Bitcoin continues its downward trajectory, a dip into the $71,000 zone could be next, followed by a potential Investments' latest market update cautioned that the BOS indicator is not always a perfect predictor but should not be ignored. The report stated, “While no guarantee of the future outlook (this metric does have false signals), this is a data reading we have had before at very high risk zones.” How does liquidity impact bitcoin’s price movementDespite the bearish short-term outlook, a silver lining for Bitcoin and other risk assets could come from rising global liquidity. Historically, an increase in M2 money supply has correlated with Bitcoin price analyst Colin Talks Crypto recently noted that a significant M2 money supply influx is expected soon, which could spark another BTC rally. The exact timing remains uncertain, but previous instances have resulted in price the federal reserve ease monetary policyAnother factor to watch is the U.S. Federal Reserve’s stance on monetary policy. The central bank has already started loosening its tight financial policies, fueling speculation about a return to quantitative easing (QE).Charles Edwards hinted at this possibility, asking, “How long until the Powell printer starts humming?” A shift toward QE could create more liquidity in the market, benefiting Bitcoin in the long ’s next for bitcoinThe next few weeks will be crucial for Bitcoin. If BTC manages to reclaim $91,000, it could resume its upward trend. However, failure to hold above key support levels may lead to further downside pressure.Investors should keep a close eye on U.S. economic developments, particularly the trade tariffs and Federal Reserve policies, as they will likely determine Bitcoin’s next big market uncertainty at its highest since 2000, 2008, and 2022, Bitcoin traders should be prepared for heightened volatility :Why is Bitcoin’s price affected by trade tariffs? Bitcoin reacts to economic uncertainty, and higher trade tariffs increase market instability, leading to price key price levels should Bitcoin investors watch? A daily close above $91,000 signals a bullish trend, while $71,000 is a potential support level for a bounce.