Bitcoin is navigating a tough market environment as traditional markets experience a historic sell-off following the implementation of Trump’s tariffs last week. In today’s report, we break down the latest price action, key technical levels, and the most important on-chain and macroeconomic factors driving the current market conditions.

Here’s what we’ll cover today:

Let’s dive in!

U.S. stock markets experienced their steepest decline since 2020 on Friday, as escalating trade tensions and renewed inflation concerns triggered widespread selling. The S&P 500 slid nearly 6% for its worst week in four years, while the Nasdaq Composite dropped 5.8%, officially entering a bear market. Following the announcement, Bitcoin demonstrated relative strength against traditional markets and moved sideways throughout the remainder of the week. We saw a strong sell-off begin Sunday night, with U.S. index futures and Bitcoin moving lower and all of them putting in new yearly lows.

The sharp sell-off followed China’s announcement of a 34% tariff on all U.S. imports, set to begin April 10, mirroring the tariffs imposed by the U.S. earlier in the week. Investor sentiment was further dampened by comments from Federal Reserve Chair Jerome Powell, who warned that the tariffs could lead to higher inflation and slower economic growth. While the March jobs report showed stronger-than-expected job creation, the unemployment rate ticked up to 4.2%, and concerns over recession risks grew.

Bond markets reflected the shift in risk appetite, with the 10-year Treasury yield falling to 3.9%, its lowest level in months. Market participants are now pricing in up to five interest rate cuts this year, as the Fed may prioritize supporting growth over controlling inflation.

The week ended with heightened uncertainty, with investors closely watching for further developments in U.S.–China relations and potential shifts in Fed policy.