Washington Rumor Mill Roils Markets: Bitcoin’s Brief Trip Above $80k Fades

In what has become a chaotic week for global markets, Bitcoin surged past the symbolic $80,000 mark in overnight trading — only to be dragged back down following a dramatic reversal in narrative out of Washington, D.C.

The market whipsaw began when unconfirmed reports suggested the Trump administration might offer a 90-day pause on matching tariffs related to the trade dispute with China. This rumor triggered a swift, hopeful rally across risk assets. Bitcoin punched through the $80,000 resistance level during this brief optimism.

https://twitter.com/KobeissiLetter/status/1909259768398479839

Reality Bites: White House Denial, Trump Threat Reverse Gains

That optimism evaporated quickly. Media outlets reportedly retracted initial stories after the White House branded the tariff pause rumor “fake news.”

Market sentiment crumbled as President Trump then stated that if China fails to roll back its 34% retaliatory tariffs, the U.S. will hike tariffs on Chinese goods to 50% starting April 9th.

Stock Market Closes Lower After Wild Intraday Swings

The Dow plunged over 1,700 points intraday Monday before recovering significantly to close with a relatively modest loss of 349 points (-0.91%).

The S&P 500 finished down just 0.23%. Still, this marked a three-day slide exceeding 10 percent for major indices, the worst such stretch since the COVID crash in 2020.

Bitcoin Technicals After Failed $80k Breakout

Bitcoin mirrored the volatility. After briefly piercing $80,000 on the rumor, the White House denial sent it tumbling back towards the $78,000 support area.

The chart shows a clear failed breakout attempt above the psychological $80k barrier. The Supertrend indicator remains bearish (signal at $89,304). Interestingly, On-Balance Volume (OBV) showed a slight uptick during the drop, possibly hinting at some dip accumulation.

Trading volume also spiked significantly. Technically, holding above $78,000 is now key; failure could risk drops toward $75,000 or $72,000. Reclaiming $80,000 is the first hurdle for bulls, with the $83,500–$85,000 zone as further resistance.

Fed’s Closed-Door Meeting Ignites Rate Cut Speculation

Adding to the day’s intrigue, the Federal Reserve held a closed-door board meeting Monday (April 7) specifically to discuss discount rates. Scheduling such a meeting outside the regular FOMC calendar is rare and immediately fueled speculation about a potential emergency rate cut, similar to the Fed’s actions in March 2020 during the COVID crisis.

Such a move, if it occurs, could inject liquidity and potentially put Bitcoin back on a bullish path later this year, offering a counterforce to the negative tariff sentiment.

Source