Why Bitcoin Is Falling: Market Uncertainty and Tariff Fears

Why Bitcoin Is Falling: Global Uncertainty Shakes Crypto Markets

Bitcoin has dropped below $84,000 as market uncertainty rises. Weak technical signals, low investor interest, and economic concerns are the main causes of the decline. President Donald Trump's tariff threats have heightened concerns about inflation and market volatility.

 Additionally, lower inflows into its ETFs indicate a decline in investor confidence. Analysts caution that Bitcoin may drop even more in the days ahead if the downward trend persists.

The value of the entire cryptocurrency market dropped by $115 billion. This decline is being caused by a number of factors, such as waning investor interest in its ETFs, technical weakness, and concerns about miner capitulation.

Source: CoinMarketCap

Bitcoin price is currently floating at $82,091.72 with a drop of 1.24% in the last 24 hours and 6.02% in the last one week, with a market cap of $1.62 trillion with a drop of 1.24% in the last 24 hours. Despite the price drop, the trade volume increased by 6.75% and went to $18.35 billion. 

Why BTC is Falling:

Trump Threatens Tariffs On Russia

The U.S. will impose major new tariffs on April 2, a day President Trump calls "Liberation Day." One of the key measures includes a 25% tariff on Russian oil.

Experts warn this could be the biggest escalation in the trade war. Higher tariffs may lead to rising consumer prices and increased inflation. Market uncertainty is at its highest in years, even surpassing the 2008 crisis. Analysts expect a highly volatile week ahead.

The cryptocurrency industry might be affected as well. Investors fear that as expenses increase, BTC miners may be forced to liquidate their holdings, which would drive down prices. Peter Brandt, a cryptocurrency analyst, cautioned that it might fall to $65,635. Additionally, technical indicators like the RSI and MACD point to further declines in the future. With no obvious signs of recovery, BTC is still on a downward trajectory.

Bitcoin ETF Inflows Drop Sharply 

Investor interest in BTC ETFs has cooled. Spot its ETF in the US saw a sharp decline in net inflows last week.

The ETFs saw just $196.48 million in net inflows. This is a 73.6% drop from the previous week’s $744.35 million. The ETFs saw positive inflows for most of the week but ended with a $93.16 million net outflow on Friday.

Bitcoin Whale Activity

Large holders, known as "whales," continue to influence market liquidity. Keith Alan, co-founder of Material Indicators, pointed out unusual movements from a whale he calls “Spoofy the Whale.”

Several key events, including Sunday’s weekly close, Monday’s monthly close, and upcoming U.S. tariffs, could trigger further price swings. Alan emphasized that while it could fall further, this whale seems committed to buying the dip—using a dollar-cost averaging (DCA) strategy.

Bitcoin Bearish Flag Breakdown

Technical analyst warns traders about a bearish flag breakdown in Bitcoin. He notes that if BTC loses support at $81K, it could drop further to the $70K–$73K range based on the measured move target.

He highlights liquidity levels, noting some support between $ 78 K-$80 K, but stronger market activity around $ 87 K-$89 K. With April 2.

Conclusion 

BTC is facing strong selling pressure. Trump’s tariff threats, weak stock markets, and declining ETF inflows are all adding to investor worries. If the downward trend continues, it could break below $80,000 soon.