Bitcoin Faces Short-Term Volatility Amid US Tariff Uncertainty and Macroeconomic Risks
Bitcoin (BTC) is experiencing significant short-term risk due to ongoing uncertainty around US tariff policies, particularly as former President Trump’s tariff stance drives market volatility. Analysts including Pav Hundal from Swyftx and experts from Bitfinex emphasize that the ’tariff ultimatum cycle’ could impact risk assets like Bitcoin over the next two months. US policymakers are waiting for definitive economic data to assess the effects of tariffs, delaying potential monetary easing and increasing the chances of an economic slowdown. Recent developments, such as the US International Trade Court blocking some of Trump’s tariff moves and the administration doubling tariffs on foreign steel and aluminum, contribute to market unpredictability. If tariff-related uncertainty persists, Bitcoin may drop below $100,000. However, if clarity is achieved and macroeconomic data improve, analysts see upside potential, with Bitcoin possibly reaching $115,000-$120,000 by June or July. Additionally, weaker-than-expected US job data and continued institutional investment could support a rally. The outlook for Bitcoin is closely tied to US economic indicators, inflation targets, and the resolution of ongoing trade tensions.
Neutral
The news presents both bullish and bearish factors for Bitcoin. Ongoing US tariff uncertainty and potential economic slowdown increase near-term risks and could drive Bitcoin below the $100,000 level, signaling a possible bearish phase. However, if tariff concerns ease, coupled with weak job data and continued institutional investment, Bitcoin could rally toward new all-time highs in the coming months. The Bitcoin price trajectory remains closely linked to macroeconomic data and the resolution of trade tensions. As a result, market direction is currently uncertain, presenting a neutral outlook until a clearer path emerges involving monetary policy and global trade developments.