Tariff fallout deepens, Bitcoin slips below US$80k

Key market insights

• Bitcoin slips below US$80k as markets brace for tariff impact: BTC found support at US$77k amid a broader market sell-off triggered by US tariffs, with altcoins also posting double-digit losses.
• Trump defends market pain as "necessary medicine" amid tariff fallout: President Trump defended the market downturn, calling it “medicine” for fixing trade imbalances.
• Fed chair warns tariffs may fuel inflation and slow growth: Federal Reserve Chair Jerome Powell warned that Trump’s new tariffs could significantly raise inflation and slow US growth.
• Paypal adds Chainlink and Solana to crypto offerings: Paypal added both LINK and SOL to its platform, enabling easier access to digital assets and supporting broader market adoption.

The weekly trading stats as of Monday, April 7th at 10:00 am AEST, based on data from Tradingview in USD.

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Bitcoin slips below US$80k as markets brace for tariff impact

Bitcoin fell sharply over the weekend, dipping below US$80,000 on Sunday evening and traded as low as US$77,000 by Monday morning. The decline followed a broader global market sell-off, triggered by the formal rollout of US tariffs on key trading partners.

Investors have reacted swiftly to the escalating trade war, with many exiting risk assets across the board, which includes cryptocurrencies. Analysts noted the move happened during a period of low weekend liquidity, amplifying the drop as large sell orders quickly pushed prices lower.

Other major cryptocurrencies mirrored Bitcoin’s losses. Ethereum, Solana, and XRP all saw double-digit declines, while smaller altcoins plunged even further. The current decline has resulted in the erasure of billions on crypto market value, the Wall Street Journal reports, and coincides with the Dow losing more than 500 points in the face of a highly volatile macro environment.

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Trump defends market pain as "necessary medicine" amid tariff fallout

US President Donald Trump addressed the ongoing market sell-off on Sunday, stating he doesn’t want stocks to fall but insisted that “sometimes you have to take medicine to fix something.” His remarks came just hours before US stock futures slid sharply, setting the stage for another rough start to the trading week. Trump doubled down on his tariff policy - particularly targeting China - arguing that the long-term benefits of reducing the trade deficit outweigh short-term market losses.

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Fed chair warns tariffs may fuel inflation and slow growth

Federal Reserve Chair Jerome Powell warned that the Trump administration’s sweeping new tariffs are likely to raise inflation and slow US economic growth. Speaking at a business journalism conference, Powell described the economic impact of the tariffs as “significantly larger than expected” and cautioned that the resulting price increases could be more than just a temporary spike. While the Fed remains committed to keeping inflation under control, Powell acknowledged that the central bank may need to respond if the tariff-driven cost pressures persist and begin to affect broader economic stability.

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Paypal adds Chainlink and Solana to crypto offerings

PayPal has just expanded its current cryptocurrency services by adding Chainlink (LINK) and Solana (SOL) to its platform, allowing users to buy, hold, and sell these tokens. This expansion is part of PayPal's ongoing efforts to provide customers with a diverse range of digital assets, enhancing accessibility and adoption of cryptocurrencies.

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Looking ahead

The crypto market endured heavy selling over the weekend, with Bitcoin finding support at US$77k on Sunday and into Monday. This marks its lowest level since March, when China first announced retaliatory tariffs against the US. The timing is no coincidence - markets globally are reacting sharply to the official rollout of sweeping US trade tariffs, which took effect last week and are now reshaping the macro-outlook across commodities, equities, and crypto alike.

The trigger is clear enough: Trump's tariffs, pitched as a necessary "medicine," have rattled investor confidence and created a fresh wave of uncertainty in the markets. Both the Dow and Nikkei have notably taken hits, and while crypto initially held firm, the illiquid weekend saw a cascade of large sell orders that ended up dragging prices down across the board. BTC has now broken its month-long support zone around US$79k-US$80k, and the next key support may lie closer to US$72k.

Ethereum, XRP, Solana, Cardano, and Litecoin also posted double-digit declines over the past seven days, mirroring the broader pullback. Meanwhile, gold continues to shine - trading around US$3.1k as investors pivot toward safer assets.

As the US, China, and other leading economies implement their respective tariffs, the potential for further market volatility remains high. Additional retaliatory measures could impact both traditional and cryptocurrency markets. Economic indicators, such as upcoming inflation data, will also be critical in assessing the broader financial landscape, so investors are advised to monitor developments closely.

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