A firestorm of tariffs has been unleashed on many countries across the globe by the Trump administration. This has led to a huge 21% fall in the S&P 500 from top to bottom. Perhaps now in the eye of the storm, Bitcoin bulls are battling to keep the king of the cryptocurrencies afloat. Will they succeed?
A whopping 104% tariff on some Chinese goods is now in effect. The extra 50% levy on certain Chinese imports was applied as China announced its own reciprocal like-for-like imposition of 34% on what the US had previously levied on China.
With the US/China trade war now going full scale, Europe being forced to react to a 20% levy, and various other countries deciding what to do with the tariffs imposed against them, global economies are in a heightened state of disorder and uncertainty.
S&P 500 forming a bottom?
Source: TradingView
In the US, the S&P 500 has now dropped a total of 21%, and has bounced from the very strong $4,800 horizontal support. Will there be a bottom made here, or is the global tariffs war going to force the price even lower?
U.S. 10-year bond yields spike back
Source: TradingView
A real problem for U.S. treasury secretary Bessent right now is how 10 yr bond yields have spiked back up, after initially starting to cave. The 10 year bond yield is what is used as a baseline for refinancing the current $7 trillion or so of maturing debt in 2025, and as such, getting the yield lower is an absolute priority. Nevertheless, the above chart is showing that the 10 year yield could get even uglier, and is suggesting that money is still not trusting longer duration government bonds as a flight to safety.
Bitcoin still plumbing the depths
Source: TradingView
Among all the financial and geopolitical turmoil is Bitcoin (BTC). Even though it could be argued that it is a non-government aligned asset, and therefore should hold value in this environment, it is still being sold off, and is in danger of going back to test the top of the last bull market at $69,000, designated by the orange line at the bottom of the chart.
As things stand, it does rather look like the price could continue to fall to this very strong $69,000 horizontal support. If it does so, this level must hold, or things could get really ugly.
One good and one bad indicator for $BTC macro picture
Source: TradingView
The weekly chart for $BTC shows a couple of good and bad indicators. The good is that the price is still respecting the 50 simple moving average (SMA), and it can be seen that this has been the case throughout the bull market so far.
On the bad side, the Relative Strength Index (RSI) is showing that the indicator is shaping to move below the very influential 44.00 level. This level has held support and resistance over Bitcoin’s entire existence, and so it is extremely important that it is held. There are still a few days to go before the week is up, and the indicator confirms above or below. This is well worth keeping an eye on.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2025/04/bitcoin-btc-struggles-amid-escalating-us-trade-war-tensions