Bitcoin Bounces Back to $81K: Trade War Turmoil Sets Stage for Massive BTC Breakout

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As US-China tensions revive and global markets struggle, Bitcoin is silently steeling itself for a breakthrough. On April 10, 2025, Bitcoin (BTC) is US$ 81,427.02, gaining 5.

30 percent in the past 24 hours, based on the data of CoinMarketCap. Even after a sudden lunge earlier this week pulled BTC down below US$ 76,000, the cryptocurrency has returned robustly. Analysts now think macroeconomic volatility, exploding US debt, and the Federal Reserve’s narrow policy tools could drive Bitcoin to new heights.



A Rocky Week for Markets The week started on a dramatic note with a change in market mood . On April 9, the White House announced that more tariffs worth 104 percent had been slapped on Chinese imports. This announcement made by President Donald Trump prompted a sale-off across equities as well as cryptocurrencies.

The S&P 500 lost its value, erasing $2.5 trillion of market capital, while Bitcoin briefly fell to US$75,000, the lowest in more than five months. But the return of BTC to above US$81,000 by April 10 indicates resilience in the face of turmoil.

Most in the crypto arena take it as an indication that Bitcoin is growing up as a hedge against macroeconomic uncertainty. Bitcoin as a Hedge in Trade War Era Bitcoin CEO Richard Teng emphasised this perspective by indicating that long-term Bitcoin holders continue to believe its position as a strong, non-sovereign store of value. “This climate might speed up curiosity in crypto,” Teng said on X.

He pointed out that investor retreat was principally influenced by transient uncertainty, rather than a lack of confidence in Bitcoin fundamentals. At the same time, Bitwise CIO Matt Hougan referenced a recent speech by Steve Miran, chairman of the White House’s Council of Economic Advisers , who noted that the dominance of the US Dollar has caused global trade imbalances and currency distortions. Hougan saw this as a de-dollarisation call, which could be a boon for BTC.

“In the near term, I believe dollar weakness is beneficial to Bitcoin,” Hougan Stated. He went on to say that the world could trend toward a fragmented reserve system with more significant roles for Bitcoin and gold. Fiscal Crisis and Weakening Dollar Provide Tailwinds VanEck’s Head of Digital Assets Research, Mathew Sigel, further added that the Federal Reserve can be compelled to reduce tariffs to dampen GDP growth without igniting fresh inflation.

“If that occurs, it can bring the liquidity conditions under which Bitcoin has universally excelled,” he said. The economic burden is a real one. America has to roll over US$9 trillion worth of debt over the next year.

Consequently, Treasury yields have sharply increased with 10-year paper reaching a peak of 4.28 percent. At the same time, the US Dollar Index (DXY) has lost some ground falling from 104.

2 to 103.0 in slightly more than one week. BlackRock CEO Larry Fink recently hinted at the promise of Bitcoin in a letter to shareholders, terming it an emerging force behind the transformation of global finance.

Volatility Persists, But So Does Optimism Even with the recovery, Bitcoin is volatile, mirroring the uncertainty of the wider market. Delayed IPOs, suspended bond issuances, and postponed mergers show that capital markets are jittery. Economists say that extended tariffs will drive up inflation and lead to recession, conditions where Bitcoin will excel.

Although short-term equities correlation continues, the long-term scenario for Bitcoin is becoming ever more bullish . Investors are starting to use BTC as a store of value rather than just a speculative commodity; it’s becoming a strategic store of value. Bitcoin’s Transition from Speculation to Safe Haven Bitcoin’s return to US$81,427.

02 in the face of economic upheaval indicates a change in market attitude. In a world fighting trade wars, budget deficits, and de-dollarisation, Bitcoin is a rare, decentralised option. As institutional confidence falters and the policy toolkit of the Federal Reserve constricts, Bitcoin can evolve from a risk-on bet to a global financial hedge .

Although volatility will surely continue, the times are set for Bitcoin to establish itself, not only as digital gold but as a pillar of the new financial order..