Bitcoin's Price Fluctuates 20% Amid Trump's Tariffs, Expert Predictions

Bitcoin's price has experienced significant fluctuations in recent months, with experts holding divergent views on its long-term prospects. The cryptocurrency briefly surpassed $109,000 following Donald Trump's return as the 47th U.S. President but has since struggled to maintain momentum above $90,000. Market sentiment has been further dampened by Trump's aggressive tariff policies, which have introduced new uncertainties into global trade and investor confidence.

Despite the volatility, some analysts remain optimistic about Bitcoin's future. Dan Held, a Bitcoin educator, encouraged investors not to panic during bearish moments, emphasizing the emotional nature of investing and the importance of holding onto Bitcoin. Changpeng Zhao, the founder of Binance, also expressed his belief that Bitcoin is "definitely going to $1 million," despite the current market turbulence. Zhao's comments come as Pakistan embraces blockchain innovation, adding weight to his prediction. Charles Hoskinson, the founder of Cardano, also suggested that Bitcoin could reach $250,000 this year, citing the involvement of tech giants like Apple and Microsoft.

However, not all experts share this optimism. Peter Schiff, a prominent critic of Bitcoin, pointed out that the cryptocurrency is currently trading below its January highs in multiple currencies, suggesting that investors in Europe and Japan may be more likely to sell their holdings. Schiff's comments highlight the polarizing views within the crypto community regarding Bitcoin's short-term trajectory.

On-chain data from IntoTheBlock indicates that nearly 79% of Bitcoin holders are currently "in the money," suggesting a positive outlook. However, technical indicators offer a more balanced view, with Bitcoin's recent uptick to $83,757.72 backed by a positive Chaikin Money Flow (CMF) reading of 0.06, but the Relative Strength Index (RSI) hovering around 50, indicating hesitation. If momentum builds, analysts suggest that the next key resistance could emerge near the $94,500 mark, potentially setting the stage for Bitcoin's next major breakout.

While short-term volatility is likely, a prolonged trade war could drive long-term capital inflows into Bitcoin. Institutions are balancing risk-off moves towards established crypto with a longer-term view on the need for alternative financial infrastructure. Experts believe that investors are increasingly turning to digital assets as traditional finances face uncertainty and significant risks. Large Bitcoin wallets have also witnessed notable growth recently, indicating growing confidence around the asset.