Bitcoin has experienced a fluctuating trading session over the past 24 hours, moving between $81,362 and $83,654 amidst rising market uncertainty. A major factor influencing this price movement is the new tariff policies being introduced by President Donald Trump's administration, which has stirred concerns across both traditional and crypto markets.
The overall crypto market trends in April 2025 remained flat, with total capitalization falling by 1.3% to $2.79 trillion during late Asian trading hours on Monday. Investor sentiment stayed in the "fear" zone at 34, as Bitcoin repeatedly tested local lows. This indicates that the Bitcoin market in 2025 is still grappling with significant volatility.
With Bitcoin price fluctuations leading the market, most altcoins followed suit, experiencing only modest single-digit gains. As of the latest update, Bitcoin is trading at $83,542, up 1% over the past day. Despite the fluctuations, Bitcoin's dominance in the market remains evident.
Altcoin Market Performance and 2025 Trends
Over the past 24 hours, the altcoin performance saw a decline of 2%, with market capitalization dropping from $1.04 trillion to $1.02 trillion. The altcoin market dominance remains low, with the altcoin season index holding steady at 17, reflecting Bitcoin's continued dominance.
Major altcoins such as Ethereum (ETH), BNB, Solana (SOL), and Tron (TRX) experienced moderate gains ranging from 1% to 3%, following Bitcoin's movements. Among the top performers, Core (CORE), Toncoin (TON), and Flare (FLR) showed notable short-term price increases, each recording single-digit gains.
Core’s price surge followed the release of a new governance proposal aimed at adjusting its Dual Staking ratios, a system that allows users to increase staking rewards by locking both BTC and CORE tokens. Meanwhile, Toncoin saw an uptick in large transaction volumes, indicating growing whale activity, which piqued the interest of traders and the broader crypto community.
Flare also received a boost after showcasing its new software development kit during a recent hackathon. The SDK allows the creation of AI-powered blockchain applications, which could further enhance its utility in the growing crypto market trends of 2025.
Why Bitcoin Is Down: Impact of Geopolitical Factors
The recent dip in Bitcoin prices can be attributed to a mix of geopolitical tension and economic uncertainty. Market anxiety has spiked following US President Donald Trump’s announcement of new tariffs, including a 25% tariff on imported cars, with potential repercussions for the pharmaceutical sector as well.
Furthermore, Trump’s repeated reference to April 2 as "Liberation Day," when the US is expected to impose new "reciprocal tariffs" on various countries, has caused considerable unease among investors. These geopolitical tensions have triggered a broader risk-off sentiment across both traditional and crypto markets.
As a result, Bitcoin's trading volume has dropped, reflecting a decline in demand in spot markets and a pullback in futures trading. Traders are hesitant to take new positions, preferring to de-risk amid macroeconomic uncertainty.
This shift in sentiment is clearly visible in the spot Bitcoin ETF inflows, which have plummeted by over 70% compared to the previous week. Additionally, the broader economic environment hasn’t been supportive either. The recent PCE report indicated higher-than-expected inflation, and the March data from the Conference Board revealed that US consumer confidence is at its lowest point in 12 years.
Despite these negative indicators, Bitcoin tested support levels around $81,000 multiple times before rebounding above $83,000. However, analysts remain uncertain whether the price can stabilize above this level in the short term, especially with the global economic uncertainty hanging over the market.
Will Bitcoin Go Up? Market Analysis and Forecast for 2025
Kadan Stadlemann, Chief Technology Officer at Komodo, warned that the economy is in a precarious position, pointing to market signals such as the weakening US Dollar, falling two-year yields, and rising gold prices, which are currently hovering near $3,150 per ounce.
Stadlemann also mentioned that some key figures within the Trump administration, including Commerce Secretary Howard Lutnick, have suggested that a recession might be a “reasonable trade-off” to push through broader economic policies. This has led to a shift in capital flows, with more investors turning to traditional safe-haven assets like gold and fiat currencies.
Bitcoin, often seen as a hedge against economic uncertainty, is currently behaving more like a risk asset. Should the US economy slip into recession, the resulting global economic shock could put downward pressure on Bitcoin’s price, potentially leading to further declines. A stock market crash could have even more severe consequences for Bitcoin.
However, some analysts remain optimistic about Bitcoin's potential for a short-term surge. Merlijin The Trader, for example, identified a potential breakout zone between $89,000 and $91,000. This zone is considered a heavy resistance level, where a significant number of short positions are clustered. Once Bitcoin breaks through this level, it could trigger a short squeeze, forcing traders who have short positions to close them, which would lead to an increase in demand and a price rally.
According to the heatmap shared by The Trader, many leveraged positions could cause a short squeeze once Bitcoin enters this zone. This event would push Bitcoin’s price higher as traders close their positions and buy back Bitcoin.
Bitcoin’s Technical Analysis: Breakout Potential in 2025
In addition to Merlijn The Trader’s optimistic outlook, market commentator Satoshi Flipper also highlighted a potential bullish scenario. He pointed out a descending wedge pattern on the daily BTC/USDT chart, a technical setup often associated with upward price reversals. Flipper suggested that Bitcoin could soon break out of this pattern, with a target price as high as $110,000, making this an exciting time for Bitcoin investors.
Conclusion: Navigating the Bitcoin Market in 2025
Bitcoin continues to exhibit price fluctuations in response to rising global economic and geopolitical uncertainty. The impact of Trump’s tariffs and fears of a recession have caused investor sentiment to remain in the fear zone, and trading activity has been subdued.
Nevertheless, some analysts remain confident that Bitcoin’s price could surge in the near term. With the growing potential for a short squeeze and Bitcoin breaking through major resistance levels, there are opportunities for significant price increases. However, with the uncertain global economic situation, investors are urged to stay cautious and consider all factors before making any decisions in the highly volatile crypto market of 2025.
Writer: Chrycentia Henryana
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