Volatile Friday: Bitcoins Roller Coaster Amid US Tariff Uncertainty and Fed Chairs Remarks

On April 4, the daily liquidation volume in the cryptocurrency market reached $250 million due to uncertainty surrounding the U.S. Federal Reserve and negative sentiment from U.S. trade tariffs.

The ratio of forced long and short liquidations was roughly equal, at $120 million and $130 million respectively. This is attributed to the high volatility of the leading cryptocurrency and the broader market.

On Friday, Bitcoin rose from $81,800 to $84,700 but then dropped back to its initial levels following China’s announcement of retaliatory tariffs against the U.S. Since the «Day of Liberation,» Bitcoin has attempted several times to reclaim the lost level of $85,000 without success.

Throughout the day, the digital gold gradually rebounded, only to decline again following the release of U.S. labor market data. The subsequent speech by Federal Reserve Chairman Jerome Powell added to the negative trend.

Despite U.S. President Donald Trump’s call for a reduction in interest rates, Powell maintained a cautious stance, noting that trade tariffs are likely to negatively impact inflation.

«Our duty is to keep long-term inflation expectations in check and ensure that a one-time spike in prices does not become a persistent inflation problem,» emphasized the Fed Chairman.

At the time of writing, Bitcoin is trading at around $83,000, with other top cryptocurrencies showing a strong correlation to the leading asset.

Concurrently, the dominance index of digital gold has approached 63%. This metric has been on the rise since January 2023.

Analyst and MN Trading founder Michaël van de Poppe remarked that Bitcoin is «holding its ground,» although he did not rule out a dip below $80,000.

Technical analyst Ali Martinez also highlighted the risk of further correction amid slowing on-chain activity.

Conversely, trader Kaz Abber spotted a «falling wedge» pattern, suggesting a potential rebound for Bitcoin. For this bullish scenario to materialize, the asset must surpass the $86,500 level.

«Bitcoin did not hit a new low yesterday, despite the stock market enduring its worst day in five years. Historically, the first cryptocurrency typically hits bottom before the stock market does,» the expert added.

It’s worth noting that JPMorgan analysts pointed out that high volatility and capital outflows from BTC ETFs undermine the perception of the leading cryptocurrency as digital gold.

Ki Young Ju, founder and CEO of CryptoQuant, announced the end of Bitcoin’s bull run, predicting that prices will continue to decline or remain stagnant over the next six months to a year.