Bitcoin Plunges Toward $80K as Trump’s Tariffs and Mystery Hack Spook Market

Bitcoin has retreated toward the $80,000 level after briefly surging toward $90,000 earlier this week, as market participants digest inflation concerns and potential trade disruptions. Cryptocurrency markets continue to respond to macroeconomic signals, with particular sensitivity to Federal Reserve policy and Donald Trump‘s proposed international tariffs scheduled for implementation on April 2.

Legendary cryptocurrency trader Arthur Hayes, co-founder of Bitmex, believes a significant shift in monetary policy is approaching. "There was a seminal change in the [Federal Reserve chair Jerome Powell’s] tone at the last Fed board meeting," Hayes told podcaster Kyle Chasse. Hayes, who was recently pardoned by President Trump for Bank Secrecy Act violations alongside fellow BitMex founders, suggests the Fed appears to be signaling a return to monetary easing.

Hayes specifically highlighted Powell’s recent characterization that "inflationary aspects of tariffs are transitory," interpreting this as evidence that the Fed is preparing to maintain accommodative monetary conditions regardless of Trump’s tariff policies. This approach, according to Hayes, would create favorable conditions for cryptocurrency valuations.

The Federal Open Market Committee (FOMC) maintained interest rates at their current levels during their March meeting, while simultaneously downgrading economic growth projections and increasing inflation forecasts. The committee also indicated further scaling back of its quantitative tightening program, which has been gradually reducing the bonds held on the Fed’s balance sheet.

In a significant development, Senator Elizabeth Warren of Massachusetts has warned that President Trump might remove Powell from his position. "Nobody is safe, not even the chairman of the Federal Reserve," Warren told Bloomberg. "If [Trump] can just mow through every civil servant, if he can just mow through the Consumer Financial Protection Bureau, it’s a form of lawlessness and all the power belongs to the king."

This warning comes as Trump has publicly pressured the Fed to reduce interest rates immediately. "The Fed would be much better off cutting rates as U.S. tariffs start to transition (ease!) their way into the economy," Trump posted on his Truth Social platform, urging Powell to "do the right thing."

Meanwhile, analyst Markus Thielen, founder of 10x Research, suggests Bitcoin could soon rebound toward $90,000. Thielen attributes this potential recovery to Trump’s softening stance on reciprocal tariffs and the Fed’s increasingly dovish position. Thielen noted that Powell’s signals suggest the Fed will "look past short-term inflationary pressures, laying the groundwork for potential future easing."

The planned tariffs targeting goods from Canada, Mexico, and China are scheduled to begin April 2, though there are indications Trump may adopt a more flexible approach than initially announced. This policy uncertainty, combined with shifting Fed monetary policy expectations, continues to influence cryptocurrency market volatility.

The cryptocurrency market is also weighing concerns about a recently identified security threat, adding another layer of caution for investors already navigating complex macroeconomic factors in their digital asset investment decisions.

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