- Trump accused China of economic retaliation and urged swift interest rate cuts, raising uncertainty across financial markets.
- Bitcoin found support around $74,000, backed by long-term holders, and rebounded despite wider market volatility linked to tariff concerns.
- Pressure on the Fed to ease policy could fuel demand for Bitcoin if liquidity rises and confidence in fiat currencies declines.
President Donald Trump intensified his criticism of China’s recent tariff response, accusing the country of economic abuse while urging the Federal Reserve to cut interest rates. His statement came amid a 34 percent retaliatory tariff hike from Beijing. Trump also claimed there is no inflation despite recent market instability, pointing to falling oil and food prices.
The markets registered Trump’s comments which simultaneously affected overall crypto market stability. The value of Bitcoin fell beneath $75,000 to reach its daily minimum at $74,434, then settled around $76,561. Since April 1, there has been a $100 billion market depletion in the cryptocurrency market because investors are concerned about how international trade conflicts will affect their investments.
Rate Cut Pressure Raises Bitcoin’s Appeal
Trump’s call for the Federal Reserve to act faster on interest rate cuts added to existing speculation about monetary policy shifts. Historically, expectations of easier monetary policy have drawn investors toward alternative assets, including Bitcoin. A shift toward rate cuts could improve liquidity and raise demand for crypto.
Bitcoin found short-term stability near the $74,000 mark, a zone where data from Glassnode indicated strong holder activity. More than 50,000 BTC were accumulated near $74,200 by long-term holders who have remained inactive since March 10. This cluster has now emerged as a key support level amid the broader market downturn.
Fed Decision Becomes Key Market Focus
As traders digest Trump’s tariff strategy and his push for a monetary response, attention is shifting to the Federal Reserve’s next steps. If policymakers respond with rate cuts or fresh liquidity measures, Bitcoin could gain further support. For now, investors continue watching for signs of policy changes that may alter the course of digital assets.
