Will Bitcoin Crash to $71K? Analysts Warn of Economic Pressure

Bitcoin is once again under pressure as new U.S. trade tariffs add to an already volatile market. Prices are swinging, uncertainty is growing, and analysts are drawing comparisons to the 2022 bear market bottom. Could history be repeating itself? Some experts believe Bitcoin might tumble to $71,000 if economic stress continues to build – while others say a big rebound could be around the corner.

With markets on edge and the Federal Reserve making moves, the coming weeks could be crucial for Bitcoin’s next big shift.

US Tariffs Put Pressure on Bitcoin

Bitcoin took a sharp hit after President Donald Trump announced global reciprocal trade tariffs on April 2. While U.S. stocks managed to recover, Bitcoin fell by 8.5% in just one day.

According to Edwards, business expectations in the U.S. have now dropped to levels last seen in 2000, 2008, and 2022—years that were linked to major market downturns.

A chart from the Philadelphia Fed Business Outlook Survey (BOS) showed that business confidence has fallen below 15, a sign of economic weakness. While the BOS is not always a perfect predictor, Edwards noted that historically, such low readings have often signaled high-risk periods for financial markets.

“If the tariff war escalates or corporate margins start to shrink, we could see further downside,” he warned.

Key Bitcoin Price Levels to Watch

For traders, the most important level to watch in the short term is $91,000. If Bitcoin closes above $84,000 on a daily chart, it could be a sign of renewed bullish momentum.

However, if prices continue to decline, Bitcoin may test the $71,000 support level, where a strong rebound could occur.

Capriole Investments pointed out that the overall direction of the U.S. economy will likely determine Bitcoin’s next big move.

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Will the Federal Reserve Step In?

A shift in U.S. monetary policy could have a major impact on Bitcoin. The Federal Reserve has already started easing its tight policies, leading to speculation that it might return to quantitative easing (QE).

Charles Edwards raised an important question: “How long until the Powell printer starts humming?” This refers to the possibility of the Federal Reserve increasing the money supply, a move that has historically helped drive Bitcoin’s price higher.

Analysts believe that if M2 liquidity—meaning the total money supply—starts rising, Bitcoin could begin recovering as early as May.

Bitcoin has been through storms before, but with tariffs, market fears, and the Fed in the mix, this one’s shaping up to be a wild ride.

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