- Summary:
- Bitcoin price faces an uphill task as risk aversion grows in financial markets. However, institutional appetite for BTC provides support.
Bitcoin price stayed stable on Wednesday, rising marginally to stay above the psychological support at $85k. The coin traded at $85,216 at the time of writing, up by 0.6% on the daily chart. BTC has long been touted as “digital gold”, but has ironically suffered the risk aversion triggered by the ongoing global trade tariff war.
US Bitcoin spot ETFs recorded outflows worth $157.8 million on April 1, the largest outflow in the last thirteen days. On the contrary, gold has been on a steep ascent, rising to all-time highs of $3,149 on Tuesday.
Cryptocurrencies are likely to feel the weight of risk averse investors as US reciprocal tariffs come into force today. Nonetheless, few doubt Bitcoin’s ability to be resilient in the face of adversity. Institutional interest in the coin remains strong, and many whale investors will likely line up to buy the dip.
For instance, USDT issuer, Tether, has revealed that it bought $750 million worth of BTC in Q1 2025. In addition, Strategy (formerly MicroStrategy) bought 22,048 BTC worth $1.92 billion between March 24-March 30 at an average price of $86,969.
Elsewhere, BlackRock CEO Larry Fink has added his voice, stating that rising US debt could erode the dollar’s appeal as the global reserve currency, and potentially see it replaced by Bitcoin. Ultimately, much will depend on the extent of the reciprocal trade tariffs set to enter into force from April 2.
Bitcoin Price Prediction
The momentum on Bitcoin price calls for further upside if action stays above $84,480. The coin will likely meet initial resistance at $85,530. However, an extended control by the buyers will breach that barrier, and that momentum could see BTCUSD test $86,275.
Conversely, the momentum will likely shift to the downside if the price breaks below $84,480. That could see the first support level established at 83,420. However, a stronger downward momentum will break below that level and invalidate the upside narrative. Meanwhile, the downside action could extend to test the second support at $82,410.
