Bitcoin under pressure due to trade war worries

The price of the world’s largest digital token, Bitcoin, has been significantly affected by ongoing trade war tensions, especially those involving the United States and China.

As of April 16, 2025, these trade war worries and geopolitical issues have led to substantial volatility and price losses in Bitcoin, Ethereum, Solana, and other major digital assets.

Bitcoin came off record highs of $109,000 hit on January 20, as escalating trade tensions prompted a sharp sell-off in growth-led crypto assets, including Bitcoin, while investors looked for safety in gold and other safe-have assets.

Tariff tensions between US and China stood out as a major factor of the recent volatility strike in the crypto market, especially after President Donald Trump's administration banned exports of H20 chips to China, a move likely to hit NVIDIA's financial status by $5.5 billion in the company's fiscal first quarter, ending April 27.

(Source: https://www.cnbc.com).

Hence, Bitcoin failed to bounce strongly above its 200-day Exponential Moving Average (EMA) of $85,000 last week as traders made a comeback buoyed by sentiment hinged on President Trump pausing tariffs for 90 days, except for China.

Price outlook:

Some analysts believe that, if trade war worries ease and appetite for risk returns in the market, Bitcoin could break above $85,000, and it could extend the rally to the key psychological level of $90,000, and then to retest its March 2 high of $95,000.

In case the trade war escalates from the current levels, Bitcoin could extend the losses to retest its recent low of $76,000. A close below this level could extend an additional decline to retest its important psychological level of $70,000.