The flagship cryptocurrency remains in a fragmented state, unable to establish a firm footing. Bitcoin is experiencing significant volatility and posted losses this week. Nevertheless, experts remain optimistic, anticipating a gradual recovery of the flagship digital asset.

On the evening of Wednesday, April 9, a major rally was recorded across both equity and commodity markets, reflecting investor reactions to US President Donald Trump's decision to delay the implementation of previously announced tariffs for 90 days.

At one point, every single stock within the broad-market S&P 500 index was in the green. The index rose 8.3%, with only 20 of its components closing in negative territory. Leading the gains were airline stocks (United Airlines, Delta Air Lines) and semiconductor companies (Microchip Technology, Advanced Micro Devices, and ON Semiconductor Corp).

According to US Treasury Secretary Scott Bessent, the White House could soon reach new tariff agreements with the majority of its allies. Talks have already been scheduled with over 70 countries expressing willingness to deepen cooperation with the United States.

Against this backdrop, the US Dollar Index (DXY) rebounded from the key 102-point support level, which it had been testing actively earlier this month. It recovered all of Tuesday's losses, climbing back to 103. Investors dumped US Treasuries, which they had previously purchased en masse to hedge against the risk of a global recession triggered by the tariff war. "The buy-the-dip reflex is extremely strong. The recent tech stock sell-off has made market quotes more attractive," crypto expert Chris Beauchamp noted.

An island called China

Later that week, Trump officially announced a 90-day pause on the mutual tariffs initially declared the previous week. The steepest tariffs were imposed on Vietnam (46%), Sri Lanka (44%), and Cambodia (49%). However, countries that did not impose retaliatory measures will now face a reduced tariff of just 10% for the 90 days. China, on the other hand, is a different story—the tariff on Chinese goods has been increased to a staggering 125%. The reason? Beijing's retaliatory move. On Wednesday, April 9, China's authorities raised tariffs on US imports from 34% to a critical 84%.

"We've reached a turning point in the trade war initiated by the US president. This gives countries willing to negotiate on tariff elimination some time to work out a deal," said Phil Flynn, senior analyst at Price Futures Group. "Trump has left China on an economic island, completely isolated from the rest of the world," he added. A striking metaphor indeed!

Amid this, the combined market capitalization of the "Magnificent Seven", the largest US companies by market cap, surged by more than $1 trillion. With tech giants dominating this group, the Nasdaq index jumped more than 10%, outpacing the S&P 500. And it may not stop there.

Crypto reacts sharply to global instability

Meanwhile, the global crypto market responded with a sell-off across most assets. On Monday, April 7, Bitcoin plunged to $74,500, triggering shockwaves across global financial markets. The situation has since stabilized, but a full recovery is still a long way off.

The bearish market structure deepened when BTC revisited its recent low of $78,600 early in the week. The price now appears to be drifting in a vacuum—neither rebounding nor bottoming out, leaving its direction unclear. Analysts doubt whether the bulls can hold current levels.

From a technical outlook, there's a shimmer of hope for a short-term bullish push. The range of $75,100 to $80,000 offers a potential rebound zone. However, this upside momentum is not considered strong enough to reverse the broader downtrend.

Bitcoin sinks below $80,000: consolidation or another dip?

On April 9, Bitcoin surged above $84,000, gaining more than 8% within a few hours following Trump's unexpected announcement of a global tariff pause. This rally supported a recent forecast by BlackRock CEO Larry Fink, who suggested that growing economic uncertainty might present an attractive entry point for long-term crypto investors.

Despite this bullish move, Bitcoin faced stiff resistance at $88,800—a high from April 2 when the initial tariff news broke. The top of the Keltner Channel now sits near $88,130, making it a critical resistance zone.

Analysts note that traders who entered during BTC's correction may start taking profits near breakeven levels, forming a potential "wall of selling." If Bitcoin fails to overcome this resistance, the path to the psychological $100,000 level could remain blocked.

The lower border of the Keltner Channel—currently at $73,500—acts as strong support and aligns with a liquidity zone formed during recent consolidation. A drop below $80,000, especially with growing selling pressure, could accelerate the downward move.

Trump's tariff pivot sparks BTC breakout to $84,000

On April 10, Bitcoin gained 12% after Trump dramatically revised his aggressive trade policies, replacing sweeping tariffs with a flat 10% duty, except for China. The policy shift eased investor fears about a full-blown global trade war.

The crypto market responded swiftly. BTC jumped from a low of $74,700 to a peak of $83,600, its strongest single-day gain since March 2025. Leading altcoins followed suit, with Ethereum, XRP, Cardano, Solana, and Dogecoin all posting double-digit gains.

The 10% rebound in BTC on April 10 coincided with comments from BlackRock CEO Larry Fink, who stated that widespread tariff enforcement could trigger a global market correction of up to 20%. However, he also called the situation "an incredible buying opportunity," encouraging investors to act. "I see this more as a buying opportunity than a selling one," said Fink, who also expressed a positive near-term outlook for Bitcoin.

The Trump administration's latest tariff changes affirm Fink's argument that the chaos of the trade war may present seasoned traders with a chance to capitalize on falling prices. Despite lingering bearish risks, many market participants viewed the situation as a green light to reenter the market, turning current uncertainty to their advantage.