Bitcoin price came crashing down under $75,000 for the second time in the past week as Donald Trump’s 104% tariff on China went into effect. Riskier assets like equities and crypto have been facing the most heat in this tariff war, with BTC extending its weekly losses to 11%, with altcoins led by Ethereum (ETH) on a free-fall with more than 25% weekly losses.
As the world’s two largest economies enter a strong tariff war, massive uncertainty has gripped the global market. Thus, institutional selling for Bitcoin and other asset classes has also resumed with the BlackRock iShares Bitcoin Trust (IBIT) offloading 3,296 BTC yesterday, the third-largest Bitcoin ETF outflow since inception. The net outflows across all US Bitcoin ETFs yesterday were $326 million.
The market has witnessed a classic bull trap as the Bitcoin price jumped to $80,400 in a relief rally, only to give up all of its gains as Trump tariff war impact continues to build selling pressure. As per the Coinglass data, the overall crypto market liquidations have soared to $390 million amid the recent fall.
Is Bitcoin Price Bracing for A Full-Blown Global Recession?
Since the beginning of 2025, with the Donald Trump administration taking charge at the White House, Bitcoin price and other digital assets have come crashing down amid the Trump tariff wars. BTC is down over 18% year-to-date, with analysts pricing an even further correction to $70,000 and below.
If the US stock market correction extends further, the chances of a full-blown recession are increasing with stocks, gold, crypto, and bond markets collapsing. Popular economist Peter Schiff noted:
“If Trump’s secret agenda is to crash the stock market to bring down long-term interest rates, the plan already failed. The yield on the 30-year Treasury is now above 4.75%, its highest since February 19th. So the plan to crash the stock market is now crashing the bond market too”.
Will the Fed Pivot Soon With Interest Rate Cuts in May?
As the global markets are on turmoil, the expectations of a Fed rate cut in May are growing even more. Global Macro Investor and founder of Real Vision commented on the current market conditions, adding:
“This feels a lot like Dec 2018 for those that were around. Powell signaled a pivot. I think we get the same, plus a trade resolution with China. Risk in stocks feels like 10% downside max vs 15% upside in 2 weeks, and 25% upside in a month or two, and much more in 6 months”.
BitMEX CEO Arthur Hayes also stated that this is the right time for the Fed intervention. He also expects the flow of Chinese money into Bitcoin if the uncertainty in the global macro increases further.
In a recent post, Hayes highlighted the Federal Reserve’s precarious position, stating, “The Fed is on the clock, shit is breaking down.” Hayes pointed to contrasting market dynamics to underscore his concern. Previously, declining stock prices accompanied by a drop in 10-year Treasury yields were a positive signal. However, he noted that the current scenario of falling stocks paired with rising yields is deeply problematic, calling it “bad!”
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