Quick Takeaways
- White House Denial Sends Shockwaves: A report suggesting a 90-day tariff delay was swiftly denied by U.S. officials.
- Bitcoin Swings on Policy Whiplash: BTC briefly surged before reversing, highlighting market sensitivity to geopolitical headlines.
- Tariff Drama Sparks Broader Volatility: Equities and crypto markets react sharply amid heightened economic uncertainty.
- Experts See Crypto Hedge Potential: Analysts suggest Bitcoin may benefit long-term as a hedge against policy-driven volatility.
- Market Eyes Fed Response: Bond markets signal expectations of future rate cuts, which could favor Bitcoin and risk assets.
Bitcoin experienced dramatic price swings on Monday following conflicting reports about a potential delay in new U.S. tariffs. Initially, markets reacted positively to speculation that the Trump administration might postpone a fresh round of tariffs for 90 days. However, that optimism was short-lived.
According to Bloomberg, the White House quickly denied the report, confirming that the proposed tariffs will move ahead on schedule. The denial came as a jolt to traders who had briefly positioned for a risk-on rally. Bitcoin, which had surged above $78,000, dropped back toward the $75,000 level within hours.
Whiplash from Washington
The conflicting signals from Washington caught traders off guard. Bitcoin, a bellwether for risk appetite in 2025, responded with sharp intraday volatility. While equities also reversed gains, it was BTC that saw the most pronounced reaction.
“We’re in a moment where Bitcoin trades like a macro asset,” said Jeff Park, Chief Analyst at Bitwise Asset Management. “Every geopolitical headline has an outsized impact, especially when it touches fiscal or trade policy.”
Indeed, the recent developments echo earlier forecasts made by analysts like Arthur Hayes. In a recent TokenFest analysis, Hayes argued that tariff shocks could destabilize fiat systems and push capital into hard assets like Bitcoin.
From Fiat Jitters to Crypto Confidence?
Monday’s market action underscores Bitcoin’s evolving role in global finance. As traditional markets react to trade policy fears, Bitcoin continues to oscillate between being a speculative asset and a macro hedge.
Arthur Hayes, co-founder of BitMEX, recently noted that persistent tariff conflicts could lead to broader monetary stimulus and even currency devaluation—a dynamic that could ultimately favor BTC.
“Global imbalances will be corrected, and the distortions will be papered over with printed money, which is good for BTC,” Hayes wrote in a recent X post.
Some analysts believe that the latest tariff tensions could pressure central banks to cut rates sooner than anticipated. Bond yields dipped sharply following the White House denial, signaling that traders expect more accommodative monetary policy.
Expert Sentiment Remains Divided
While long-term prospects for Bitcoin remain bullish in the eyes of some, not everyone is convinced that the current volatility will resolve in crypto’s favor.
“If the tariffs hit growth more than inflation, the Fed may have limited room to ease,” said Linda Xu, macro strategist at Blockstream Capital. “That could trap BTC in a choppy range.”
Still, she noted that retail interest remains strong and that on-chain activity points to accumulation during dips.
Eyes on the Fed, Eyes on the Chart
With Bitcoin now caught between policy-driven headwinds and stimulus-driven tailwinds, all eyes turn to the Federal Reserve. Upcoming CPI data and Fed minutes could shape expectations for monetary easing, with knock-on effects for crypto.
“It’s all about liquidity,” said Arthur Min of CryptoEdge. “If we get even a hint of QE, Bitcoin’s next leg could be explosive.”
For now, volatility remains the name of the game. Bitcoin’s swift reversal on Monday serves as a stark reminder that in the current macro climate, headlines drive prices as much as fundamentals.
Note: This article reflects market conditions and analyses as of April 7, 2025. Cryptocurrency markets are volatile and subject to rapid change. Investors should conduct their own research before making financial decisions.
Mihajlo Tošić is a content writer specializing in iGaming, crypto, and Web3. He focuses on clear, direct writing that helps brands explain, sell, or promote what they do — without overcomplicating things.
