BTCUSD: The drama surrounding Elon Musk and Donald Trump has not created a smooth run for Bitcoin lately.
BTCUSD – Daily Chart
BTC slipped to $82,500 ahead of Tuesday’s session and could look to retest the $78250 support. The post-election rally starred at $67,668 and that can be the next target.
BlackRock management believes that he U.S. dollar could lose its status as the world’s reserve currency to Bitcoin or other digital assets if the United States does not get its debt under control.
Chairman Larry Fink wrote in his annual letter to Investors that “decentralized finance is an extraordinary innovation” that makes “markets faster, cheaper, and more transparent”. But “that same innovation could undermine America’s economic advantage if investors begin seeing Bitcoin as a safer bet than the dollar”.
The U.S. debt equaled 122.3% of the country’s gross domestic product in 2023, which was higher than the 105% seen in 2018.
If every asset ends up being tokenized, Fink said, “it will revolutionize investing. Markets wouldn’t need to close. Transactions that currently take days would clear in seconds. And billions of dollars currently immobilized by settlement delays could be reinvested immediately back into the economy, generating more growth”.
That forward-looking assessment is not helping the price of BTC in the short-term as the price has struggled in 2025.
Donald Trump’s strategic reserve has disappointed investors as it will only hold BTC that was recovered by Federal investigators. Coins such as Solana and XRP may fare better with outright purchases later.
Trump’s tariffs were set to come into effect on Wednesday 2 April but they have already rocked markets and it remains to be seen if the global economy will suffer in coming months. A reduction in economic activity could weaken the appetite for tech stocks and cryptocurrencies.
