Bitcoin & Ethereum Volatility as Tariffs, Fed, and Markets Shake Up

Bitcoin Faces Volatility Amid Federal Reserve and Tariff Concerns

Bitcoin's price has experienced significant fluctuations, recently falling back toward $80,000 after nearing $90,000 earlier in the week. This decline is attributed to inflation fears, U.S. President Donald Trump's tariff threats, and concerns over a potential new hack. According to Forbes, legendary crypto trader Arthur Hayes predicts that the Federal Reserve's monetary policies could trigger a Bitcoin price boom in April. Hayes highlighted a shift in tone from Federal Reserve Chair Jerome Powell, suggesting a possible return to "stealth" quantitative easing despite the U.S. grappling with a $36 trillion debt.

Additionally, Massachusetts Senator Elizabeth Warren warned that "nobody is safe," including Powell, as Trump pushes for immediate interest rate cuts to support his trade tariff plans. Meanwhile, Markus Thielen of 10x Research anticipates a Bitcoin recovery, citing Trump's softened stance on tariffs and Powell's dovish tone as key factors.

"Tariffs don’t matter any more to Powell, and they shouldn’t matter as crypto investors," said Arthur Hayes.

Key takeaways:

Bitcoin price fell to $80,000, down from $90,000 earlier in the week.
Federal Reserve policies and Trump's tariff plans are major market influencers.
Experts predict a potential Bitcoin recovery in April.

Ethereum Reclaims Top Spot in DEX Trading

Ethereum has regained its position as the leading blockchain for decentralized exchange (DEX) trading, surpassing Solana for the first time since September. According to CoinDesk, Ethereum-based DEXes recorded a cumulative trading volume of $64.616 billion in March, outperforming Solana's $52.62 billion. This shift occurred amidst a bearish market sentiment, particularly in the memecoin sector, which saw a significant decline in activity on Solana-based platforms like Raydium.

Despite Ethereum's outperformance in DEX trading, its native token, Ether, fell over 18% in March, closing at $1,822. Analysts attribute this decline to inflationary tokenomics and the growing popularity of Layer 2 solutions, which divert activity from the main chain.

Key takeaways:

Ethereum DEX trading volume reached $64.616 billion in March.
Solana's trading volume dropped to $52.62 billion.
Ether's price fell 18% due to inflationary pressures and Layer 2 adoption.

Bitcoin and Ethereum Prices React to Tariff Deadline

As the April 2 tariff deadline approaches, Bitcoin and Ethereum prices have been volatile. Decrypt reports that Bitcoin fell to a two-week low of $81,500 before recovering to $83,465. Ethereum also saw fluctuations, dropping to $1,784 before climbing back to $1,840. The market's reaction reflects investor uncertainty surrounding Trump's trade policies and their potential impact on global markets.

The Crypto Fear & Greed Index, which measures investor sentiment, has improved slightly from "Extreme Fear" to "Fear." However, analysts remain cautious, pointing to the upcoming tariff announcement as a potential market disruptor.

Key takeaways:

Bitcoin recovered to $83,465 after hitting a low of $81,500.
Ethereum's price climbed back to $1,840 after a drop to $1,784.
Investor sentiment remains cautious ahead of the tariff deadline.

BlackRock CEO Warns of Bitcoin's Impact on the U.S. Dollar

BlackRock CEO Larry Fink has issued a stark warning about Bitcoin's potential to undermine the U.S. dollar's status as the world's reserve currency. In a letter highlighted by Forbes, Fink pointed to the U.S. national debt, which has surpassed $35 trillion, as a key risk factor. He warned that if deficits continue to balloon, digital assets like Bitcoin could replace the dollar as a safer store of value.

Fink also emphasized the dual nature of decentralized finance, praising its innovation while cautioning against its potential to erode America's economic advantage. BlackRock's iShares Bitcoin Trust has already amassed $50 billion in assets, reflecting growing institutional interest in Bitcoin.

Key takeaways: