Bitcoin faces volatility amid Trump's tariff threats

Bitcoin (CRYPTO:BTC) has experienced significant price fluctuations in recent days, largely influenced by global economic uncertainties, particularly the ongoing trade tensions between the U.S. and China.

The cryptocurrency briefly surged above $81,000 following a report about a potential delay in tariffs, only to plummet back below $79,000 after the White House denied the rumor and President Trump threatened additional tariffs on China.

The volatility in Bitcoin mirrors broader market trends, with the S&P 500 dropping over 11% since Wednesday.

This correlation between Bitcoin and U.S. stocks has become more pronounced, reflecting the increasing interconnectedness of global financial markets.

Bitcoin's recent price movements are also influenced by historical patterns.

April has historically been a positive month for Bitcoin, with an average return of 27% since 2010.

However, current market conditions, including threats of tariffs and global economic instability, pose significant risks to this trend.

The cryptocurrency market is facing a bear flag pattern, which often precedes further price declines.

This pattern, combined with the lack of a clear catalyst for an upward trend, suggests that Bitcoin may struggle to break out of its current holding pattern in the near future.

Despite these challenges, some analysts remain optimistic about Bitcoin's potential for growth.

Nic Puckrin, CEO of Coin Bureau, suggests that Bitcoin could repeat a breakout pattern similar to 2017 if it breaches the $93,000 threshold.

However, this would require a significant increase in trading volume and market catalysts, which are currently lacking.

At the time of reporting, the Bitcoin (BTC) price was $79,796.00.