Key Points
- Over 18,000 Bitcoin were sold by short-term holders due to macroeconomic volatility.
- Bitcoin’s quick response to President Trump’s tariff announcement highlights its sensitivity to macroeconomic events.
Bitcoin markets experienced significant turbulence between April 3 and 4, with long-dormant coins moving, exchange inflows increasing, and prices dropping sharply.
The turbulence was triggered by U.S. President Donald Trump’s sweeping tariff announcement, which unsettled global risk assets.
Bitcoin’s Swift Response
In response to this announcement, Bitcoin’s price fell from $88,500 to $81,000 before recovering to around $83,000. This event also led to an increase in activity from both long-term and short-term holders.
Long-term holders began to move dormant coins, while short-term holders contributed to a surge in sell-side activity. Over 1,057 BTC aged between 7 and 10 years were spent for the first time in years.
Market Activity Amid Chaos
This activity pushed the Spent Output Age Bands above the 50 threshold. Meanwhile, Bitcoin’s price hovered between $82.6K and $83.8K, suggesting long-term holders were either taking profits or reacting to macro uncertainty.
In addition to this, over 18,930 BTC from holders aged 1 month to 18 months were moved on-chain. This movement reflects not just panic selling but a broader market response to external news.
Multiple exchanges recorded an inflow of 2,500 BTC into exchanges, primarily Coinbase, indicating that large holders were preparing to sell. Following the tariff news, Coinbase registered unusually high deposit volumes from whale wallets.
These inflows aligned with Bitcoin’s sharp drop from $88.5K to $81K, confirming that capital was moving to exchanges, not cold storage—a bearish indicator.
In the midst of the sell-off, an anomaly surfaced on derivatives exchange Bybit. The Taker Buy/Sell Ratio spiked to 5.3, indicating a surge in aggressive buyers placing market buys, heavily outpacing sellers.
Bitcoin’s Sensitivity to Macroeconomic Events
The market’s response to Trump’s tariff announcement highlights Bitcoin’s sensitivity to macroeconomic events. The movement of dormant coins, coupled with high-frequency selling from newer entrants, created a perfect storm that pushed prices lower before stabilizing.
Trump’s tariff shock exposed Bitcoin’s reflex to macro stress—rapid outflows, dormant coins moving, and speculative swings. However, not all signals were bearish. Analysts at Reuters noted that such geopolitical instability could lead to dollar weakening, possibly driving future demand for Bitcoin as a non-sovereign hedge.
Nonetheless, for now, the charts suggest short-term fear and positioning adjustments, rather than systemic adoption.
