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- Trump Tariffs Deepen Miners' Struggle | News on Bitcoin Week 14 of 2025
Trump Tariffs Deepen Miners' Struggle | News on Bitcoin Week 14 of 2025
Weekly crypto update on all things Bitcoin to keep you updated
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TL;DR
BTC is down
Bitcoin dominance is up
Tether Adds 8,888 BTC in Q1, Holdings Top $8.4B
Trump Tariffs Rattle Crypto
GameStop Completes $1.5B Raise for Bitcoin Bet
Grayscale Launches Two Bitcoin Income ETFs
First Trust Unveils Two Bitcoin Strategy ETFs
Alabama and Minnesota Push Bitcoin Reserve Bills
Trump Sons Launch American Bitcoin Mining Firm
MARA to Sell $2B in Stock to Buy More Bitcoin
Trump Tariffs Deepen Miner Struggles
And much more!
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Bitcoin Price
Crypto is down this week, with BTC down 0.5% and ETH down by 4.9%:
Bitcoin dominance has increased over the week, starting from 58.8% to a high of 59.98% and ending at 59.79%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.
It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.
Bitcoin Eyes $100K Amid Decoupling From Stocks and Gold
Bitcoin (BTC) is showing early signs of decoupling from traditional assets, with some analysts predicting a rapid path toward the $100,000 level. As U.S. equities crumble under inflation fears and a renewed global tariff war, Bitcoin’s divergence from gold and the stock market has caught the attention of market participants.
Trump's Tariff Move Sparks Market Turmoil
On April 2, President Donald Trump announced sweeping global tariffs, triggering a sharp reaction across financial markets. The S&P 500 fell over 10% in the span of two days, with total losses reaching $3.5 trillion, according to Watcher Guru. Meanwhile, the Dow Jones Industrial Average plunged by 2,200 points. In contrast, Bitcoin initially dipped to $82,500 but rebounded strongly to $84,700—a 4.5% recovery—defying broader market sentiment.
JUST IN: $3.25 trillion wiped out from the US stock market today.
$5.4 billion was added to the crypto market.
— Watcher.Guru (@WatcherGuru)
8:14 PM • Apr 4, 2025
Federal Reserve Chair Jerome Powell added to the uncertainty on April 4 by warning that Trump’s tariffs could drive “higher inflation and slower growth,” potentially derailing the Fed's plans for a soft landing. Powell emphasized the unpredictability of inflationary effects, stating, “While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.”
Bitcoin Decouples, Market Watches Closely
Amid this turbulence, Bitcoin’s uncharacteristic strength has led analysts to believe a decoupling is underway. Independent market analyst Cory Bates shared a chart showing BTC rising while the S&P 500 and gold declined, commenting that Bitcoin “is decoupling right before our eyes.”
This trend has revived the “gold leads, Bitcoin follows” narrative. Gold recently surged to an all-time high of $3,167 before pulling back 4.8%. Market analyst MacroScope noted that a reclaim of $100,000 for Bitcoin would “imply a handoff from gold to BTC,” setting the stage for a new cycle of outperformance. Alpine Fox founder Mike Alfred supported this outlook, pointing to historical data showing Bitcoin’s potential to grow “10 times or more than gold.”
Volatility Ahead Amid Mixed Signals
Despite the bullish sentiment, concerns remain. The BTC-to-gold (BTC/XAU) ratio is flashing a bearish fractal that mirrors the 2021 cycle. This pattern saw Bitcoin lose ground after testing the 50-period exponential moving average (EMA) on the two-week chart. If history repeats, BTC could drop to $65,000 or even lower, with the 200-2W EMA pointing toward sub-$20,000 levels.
Geopolitical tensions are also fueling volatility. As China retaliates with 34% tariffs on U.S. goods, Trump has publicly pressured the Fed to cut rates, calling Powell “always late” in a Truth Social post. While March’s job data showed strength with 228,000 jobs added, inflation remains sticky, rising 2.8% year-over-year.
Investor Sentiment Split
While some traders anticipate Bitcoin as a safe haven amid global economic uncertainty, others caution against premature bullishness. A U.S. recession remains a key risk that could suppress Bitcoin’s momentum. Risk assets often underperform during downturns, and a sustained high-rate environment may further challenge upward movement.
Still, as traders eye historical trends and current macro divergence, Bitcoin appears well-positioned to entertain further volatility—and potentially, a renewed climb toward six-figure territory.
Bitcoin (BTCUSD) Analysis:
As of April 4, 2025, Bitcoin (BTC) is trading at $82,736. The short-term trend is negative, with resistance at $84,000 and support near $71,700. A break above resistance may signal a potential reversal, while a drop below support could deepen the correction. Medium-term momentum remains weak, with downside risk toward $70,000 despite a recent bounce from the $80,521 objective. The long-term trend is still positive, supported at $72,000 with upside potential toward $106,000.
Expected Trading Ranges:
Bitcoin (BTC): Support at $71,700; Resistance at $84,000
Market Outlook:
Bitcoin’s recent decoupling from equities and gold signals growing investor interest amid macro uncertainty. Despite Trump’s tariff war and Powell’s inflation warning, BTC holds above $83K. A break above $85K could trigger momentum toward $100K. Short-term volatility remains, but sentiment is turning bullish as capital rotates from traditional assets into crypto.
BTC/ETH ratio has seen an increase:
Over the last six days, the BTC to ETH rate has shown a clear upward trend, increasing from 45.27 ETH on March 29 to 46.18 ETH on April 4. Despite minor daily fluctuations—such as a dip to 44.65 ETH on April 1—the overall movement has been positive. The largest single-day gain occurred on April 2 with a 2.76% increase. With a 1.39% rise in the past 24 hours and a net gain of 2.01 ETH over the six-day period, the BTC to ETH rate has generally increased.
“The only thing better than bitcoin is more bitcoin.”
Financial News
Japanese investment firm Metaplanet has ramped up its Bitcoin accumulation strategy, purchasing 160 BTC for $13.3 million just one day after acquiring 696 BTC. This brings its total holdings to 4,206 BTC, worth roughly $356.2 million at current market prices.
Since adopting its Bitcoin-focused strategy in April 2024, Metaplanet has become the largest corporate BTC holder in Asia and ranks ninth globally. The firm aims to hold 10,000 BTC by the end of 2025 and 21,000 by 2026. Despite the bullish move, Metaplanet’s stock fell 0.98% during Japan’s morning trading session.
Tether acquired 8,888 BTC in Q1 2025, raising its total holdings to 100,521 BTC, now worth $8.46 billion. The move defies regulatory concerns raised by JP Morgan, which suggested stablecoin laws may force divestment from non-compliant assets like Bitcoin. Tether rebuffed the claims, citing misunderstood analysis.
The firm, flush with $13 billion in 2024 profits, continues expanding its influence through strategic investments, including stakes in Juventus FC and Rumble. Tether also minted $1B USDt on Tron, lifting its total supply near 148 billion. This growth cements Tether’s role as both a stablecoin leader and influential Bitcoin market player.
Crypto markets tumbled after President Trump imposed sweeping tariffs on global trade partners, sparking a sharp downturn in both equities and digital assets. Bitcoin dropped over 6% to $77,883, and Ether fell more than 12% to $1,575, before partial recoveries.
The total crypto market cap shrank by 8%, with the Fear & Greed Index plunging to 23, signaling extreme fear. Trump defended the tariffs as necessary “medicine” for trade imbalances. Analysts caution that ongoing macro volatility could further unsettle crypto, though some see potential for a Bitcoin rally as traditional markets wobble under economic uncertainty.
GameStop has completed a $1.5 billion convertible debt offering to fund its entry into Bitcoin and stablecoins. Approved by its board on March 25, the plan uses proceeds and cash reserves to invest in crypto under a new policy. Despite raising more than expected, GME stock saw minimal reaction, hinting at investor caution.
GameStop joins a growing list of firms adding Bitcoin to their balance sheets, following MicroStrategy’s lead. While shareholders initially rallied, the stock later dropped 24%, reflecting concerns over GameStop’s core business amid this strategic pivot into digital assets.
Bitcoin DeFi (BTCFi) has surged over 2,700% in TVL year-over-year, now topping $8.6 billion. According to Binance, this growth, coupled with anticipated interest rate cuts, could transform Bitcoin from a passive store of value into a productive, yield-bearing asset.
Protocols like Babylon and Hermetica are pioneering Bitcoin-native staking and synthetic assets, while long-term holders are back to accumulating BTC. This renewed accumulation, paired with reduced exchange supply and the U.S. establishing a strategic Bitcoin reserve, may create the foundation for a new wave of institutional demand and long-term adoption.
Adoption News
Tether made headlines this week with a $735 million Bitcoin purchase, acquiring 8,888 BTC and pushing its total holdings to 100,521 BTC, valued at $8.29 billion. The acquisition, executed at the end of Q1 2025 and withdrawn from Bitfinex, signals Tether’s continued strategy of bolstering reserves with hard assets.
While some market participants view this as a strong vote of confidence in Bitcoin, others are calling for increased transparency around the transaction. Regardless, this move highlights growing institutional adoption and reaffirms Bitcoin’s role as a reserve asset in crypto’s evolving financial infrastructure.
Lawmakers in Alabama and Minnesota have introduced new bills aiming to allow their states to hold Bitcoin in their reserves, joining 24 other U.S. states in similar efforts. Minnesota’s Bitcoin Act proposes allowing state investments in Bitcoin, crypto in retirement accounts, tax exemptions on gains, and crypto-based tax payments.
Alabama’s twin bills, while not naming Bitcoin directly, restrict crypto holdings to assets with at least $750 billion in market value—currently only met by Bitcoin. Arizona remains the closest to enacting such legislation, while other states like Pennsylvania and Montana have already rejected similar proposals.
Grayscale has introduced two new Bitcoin ETFs designed to generate revenue from BTC’s volatility: the Bitcoin Covered Call ETF (BTCC) and the Bitcoin Premium Income ETF (BPI). BTCC aims to capture premiums by writing near-the-money calls, complementing Bitcoin exposure with income. BPI targets out-of-the-money strikes on Bitcoin ETFs, blending potential upside with dividend-like returns.
Both funds promise monthly distributions and systematic options strategies, offering uncorrelated income streams. The move comes as Grayscale expands its ETF offerings, including recent filings for multi-asset and Avalanche-based ETFs, with several spot products awaiting regulatory approval.
First Trust Advisors has launched two Bitcoin strategy ETFs aimed at traditional investors seeking structured exposure to Bitcoin with risk mitigation. The FT Vest Bitcoin Strategy Floor15 ETF (BFAP) caps upside gains but limits losses to around 15%. Meanwhile, the FT Vest Bitcoin Strategy & Target Income ETF (DFII) targets higher-than-Treasury yields by selling call options on BTC, leveraging its volatility.
These ETFs join a growing wave of outcome-oriented Bitcoin products, reflecting rising institutional interest in crypto with built-in protections. The launch follows similar offerings from Grayscale and Bitwise, highlighting the sector's rapid financial innovation.
Japanese gaming company Enish has invested ¥100 million ($687,000) in bitcoin to deepen its blockchain knowledge and diversify its treasury strategy. The purchase, made via a domestic exchange between April 1–4, aligns with a growing trend among Japanese firms embracing bitcoin as a core asset.
Enish cited bitcoin’s liquidity and long-term upside as key motivations and will report holdings quarterly. This follows similar moves by Metaplanet, Remixpoint, and Gumi, marking continued institutional adoption in Japan. Enish’s blockchain game, De:Lithe Last Memories, already integrates NFTs, and this BTC move reinforces its commitment to digital asset innovation.
Mining News
Senator Ted Cruz has introduced the FLARE Act, offering tax incentives to firms that convert flared natural gas into electricity for uses like bitcoin mining. The bill encourages energy innovation, reduces emissions, and supports rural grid stability.
Companies can fully deduct the cost of approved infrastructure, while foreign entities from China, Russia, Iran, and North Korea are excluded. Industry leaders back the move, viewing bitcoin mining as a flexible, sustainable load for excess energy. The legislation aims to position Texas as a leader in both energy and crypto, and is currently under Senate Finance Committee review.
Eric Trump and Donald Trump Jr. have partnered with bitcoin mining company Hut 8 to launch “American Bitcoin.” Hut 8 holds an 80% stake, while the Trump-backed American Data Centers owns 20%. Eric Trump will serve as Chief Strategy Officer.
The venture aims to become the most efficient pure-play bitcoin miner, leveraging Hut 8’s mining infrastructure. This marks a major shift in the Trump family’s stance on bitcoin, aligning with Donald Trump’s recent pro-crypto rhetoric. Plans include scaling to over 50 EH/s and going public. The announcement boosted Hut 8’s stock, while bitcoin held steady near $82,000.
