Bitcoin fell on Wednesday, erasing some of its gains this week. This came as investors tried to understand US President Donald Trump’s tariff policies, which have significantly impacted global markets. Bitcoin reached $83,409.4, down 2.5% by 1:20 AM ET. On Tuesday, it reached over $86,000 but was unable to maintain these gains.
Tariff Uncertainty Fuels Risk Aversion
Recently, investors have begun assessing the broader implications of Trump’s erratic trade policies. The US president has hinted at the possibility of exempting some imports from tariffs, such as those on foreign cars. Meanwhile, his administration continues to impose new tariffs on semiconductor and pharmaceutical imports.
Chinese goods remain subject to cumulative tariffs of 145%. In response, China imposed retaliatory tariffs of 125%..
Bitcoin Loses Some of Its Safe-Haven Appeal
Bitcoin is often viewed as a hedge against geopolitical tensions. However, it has lost some of its appeal as a safe haven, especially with mixed signals from Washington. In contrast, gold hit a record high on Wednesday, reflecting the growing interest in safe-haven assets.
China Considers Regulating the Handling of Confiscated Cryptocurrencies
China is seeking to establish new rules for handling confiscated cryptocurrencies amid a rise in criminal cases related to them. Due to the ban on cryptocurrency trading on the mainland, Chinese authorities have partnered with private companies to liquidate assets, but this temporary solution is now under close scrutiny.
According to a Reuters report, experts are calling for tighter oversight of confiscations, amid expectations that China will emulate the “crypto reserve” strategy proposed by Trump. China reportedly holds around $1.4 billion in Bitcoin, making it one of the largest cryptocurrency holders in the world.
Altcoins decline as Ethereum and Solana lead declines
Altcoins fell sharply after sessions of sluggish price action. Ethereum fell 4.6% to $1,565.68. XRP also fell 3.6% to $2.0706. Solana fell 5%, while Cardano lost 6%. Polygon also fell 2.2%. In the meme token market, Dogecoin lost 4.5% of its value, while $TRUMP fell 3%.
Bitcoin’s bullish momentum returns on Binance
Bitcoin’s bullish sentiment is regaining strength. Data shows that buyers are beginning to dominate trading volume on Binance, the largest cryptocurrency exchange by volume.
CryptoQuant contributor DarkFost said on April 15 that the buy-to-sell ratio on Binance has returned to neutral territory. When this ratio exceeds 1, buyers are in control of the market, typically indicating an uptrend. Conversely, a ratio below 1 indicates sellers are in control, indicating a bearish market.
Bitcoin is trading at $83,810, down 1.47% over the past week.
Currently, Bitcoin is trading at $83,810, down slightly by 1.47% compared to last week. In recent days, the ratio between buyers and sellers has been mostly positive, indicating a return to positive sentiment in the Binance market. On April 14, when Bitcoin surpassed $86,000, the ratio was above 1.1, reflecting the dominance of buyers.
Indicators are signaling market tension.
Indicators are reaching the end of their positive bounces, but the most likely asset to decline is Bitcoin (BTC/USD). It is making sharp gains at channel resistance with significant volume declines and resistance above the 200-day moving average. Technical indicators are generally bullish, but they are still far from reaching overbought conditions, which could help break the channel and trigger sell-offs. However, I believe this will be a downward trend.
Analysts’ Views on Bitcoin’s Future
Although Bitcoin is receiving significant attention, the market remains indecisive. The Cryptocurrency Fear and Greed Index, which measures market sentiment, showed on April 16 that the market was experiencing a “fear” sentiment, scoring 29 out of 100.
Analysts have commented that Bitcoin’s recent price action has been quite “boring.” However, Cointelegraph previously reported that apparent demand for Bitcoin has begun to recover, but it is still not in a completely positive phase. Historically, demand can move sideways after Bitcoin’s local bottom is reached, leading to a price decline.
On the other hand, analysts at Real Vision believe that the market may be underestimating the speed of Bitcoin’s rise. Some predict that the currency could reach new highs before the end of the second quarter.
Bitcoin Pressure Due to Taxes
Rob Hamilton, CEO of AnchorWatch, stated that the Bitcoin price is currently “stabilized.” He noted that there is a struggle between those selling Bitcoin to pay taxes and those using their refunds to buy more Bitcoin. It’s worth noting that the U.S. tax filing deadline was April 15.
Bitcoin Outlook
According to CoinGlass data, if Bitcoin reclaims $85,000, approximately $637 million in short positions could be at risk of liquidation. Market indicators indicate that investors still favor Bitcoin over altcoins. The CoinMarketCap altcoin season index is currently at 15 out of 100, meaning the “Bitcoin season” is still ongoing.
Bitcoin’s market share currently stands at 63.81%, up 9.82% this year. Despite investor hesitation, many are still moving toward Bitcoin. This situation has led to a decline in global risk appetite, dampening enthusiasm for speculative assets such as cryptocurrencies
