Bitcoin holders are facing renewed pressure following US President Donald Trump’s trade tariff announcement, which sent shockwaves through global financial markets, including cryptocurrencies.
Even with Bitcoin (BTC) holders under pressure, some community members, including BitMEX co-founder Arthur Hayes, are not missing a chance to buy BTC at a discount. “Been nibbling on BTC all day, and shall continue,” Hayes wrote on X on April 7 as the Bitcoin price hovered around $75,000.
He also predicted that Bitcoin’s dominance in the broader crypto market could grow, expecting the current 60.5% market share to rise to 70%.
Traders are “powerless to second-guess Trump’s next move”
While Hayes is actively accumulating Bitcoin during this tumultuous market phase, his investment firm, Maelstrom, reportedly sold BTC in December 2024, when Bitcoin traded near its all-time high of about $100,000. In a blog post titled “Trump Truth,” Hayes had forecasted a significant crypto crash following Trump’s inauguration, anticipating a clash between market optimism and the practical realities of his policies.
The ongoing turmoil has left many traders, both retail and institutional, in a quandary. Petr Kozyakov, co-founder and CEO at Mercuryo, noted that traders are nervously contemplating their next moves as the traditional wisdom of buying during dips is tested. “Amateur retail traders and the citadels of high finance appear equally powerless to second-guess Trump’s next move,” he stated.
“Traders are cautiously waiting on the sidelines for opportunities to re-enter the market and weighing whether there may be evidence of overselling.”
Despite the short-term uncertainties, Kozyakov is optimistic about Bitcoin’s long-term potential as the “new digital gold.” This sentiment is echoed by ARK Invest founder Cathie Wood, who claims that the substitution of gold for Bitcoin is already taking place.
Bitcoin’s Relevance Beyond a Store of Value
Contrasting the bullish sentiments from figures like Hayes and Wood, Jack Dorsey, the former CEO of Twitter, expresses skepticism about Bitcoin’s future if it remains solely a store of value. Dorsey emphasized the need for Bitcoin to maintain its relevance as a payment method, saying, “If it just ends up being a store of value and nothing more, I don’t think it gains relevance at all.”
He articulated the importance of finding everyday use cases for Bitcoin, suggesting that without transitioning to a payment system, it risks fading into irrelevance.
Despite being often seen as volatile and thus a barrier to mainstream payment adoption, Bitcoin continues to be utilized on platforms like BitPay. In recent times, certain jurisdictions have explored Bitcoin as a viable payment tool in global trade.
As the market attempts to navigate these uncertainties, it is evident that the future of Bitcoin hinges on its ability to adapt and establish itself firmly both as a store of value and a practical means of transaction.
