Bitcoin Drops 25% In Five Days Amid Trump Tariffs

Bitcoin's price continued to decline on March 29, marking its fifth consecutive day of losses and reaching an intraday low of $81,769. This downward trend was intensified by the newly imposed reciprocal tariffs by U.S. President Donald Trump, which included a 25% tariff on all vehicles manufactured outside America.

As traders await April 2, dubbed "Liberation Day" by Trump, where broad-scale tariffs are anticipated, the prospects for a Bitcoin rally are diminishing. Despite this, Arthur Hayes, a prominent figure in the Bitcoin community, remains optimistic about the cryptocurrency's future. Hayes predicts that Bitcoin is poised to reach a significant numerical milestone before topping out.

In a conversation with Kyle Chasse, the founder of Master Ventures, Hayes suggested that Bitcoin is likely to experience a steady uptrend as the monetary supply increases. He speculated that Bitcoin could hit a "numerically interesting number," such as $1 million, $666,000, $500,000, or $250,000, before reaching its peak. Hayes believes that at this point, the pace of fiat money creation will be unsustainable, making it an opportune time to sell.

Hayes also noted that the historic four-year cycle driven by the Bitcoin halving is less pronounced due to the maturation of crypto as a bona fide asset class. Instead, Bitcoin's price action is now influenced by fiat liquidity levels in the markets. The Bitcoin halving, which occurs every four years, reduces miners' rewards by half, causing a supply shock that has previously led to parabolic rallies. The April 2024 halving reduced the Bitcoin network’s block reward to 3.125 BTC per block.

Hayes further emphasized that Bitcoin has evolved into the best indicator of fiat liquidity globally, a role previously held by gold. He highlighted that Bitcoin's 24/7 market accessibility and its dependence on fiat liquidity make it a crucial asset for monitoring global financial conditions. Pro-crypto policies from the Trump regime have also legitimized crypto in the eyes of institutional investors, potentially ushering in new capital flows and decreasing the volatility of digital assets.