Bitcoin struggles with tariff volatility: Will the actual price hold up over the next 2 years?

Bitcoin has felt the impact of the ongoing global trade tensions, with little to no bullish momentum. This asset appears to have halted its price increase, lowering investors' expectations for a short term recovery. Currently trading above $77,000, BTC has fallen nearly 30% from its all-time high, including a decrease of 1.6% in the past 24 hours. In this context, a recent insight from CryptoQuant Onchained collaborator shows that Bitcoin is approaching a crucial threshold that could determine the next main direction of this asset. The actual price level of Bitcoin is being focused on. The latest analysis from Onchained indicates the convergence of Bitcoin's spot price with its 2-year Realized Price. This metric, derived from on-chain data, calculates the average purchase cost of coins that have been moved on the blockchain over the past two years.

This price range often serves as a significant support level, especially during the transitional period between bear and bull markets. Historically, Bitcoin has maintained price action above the 2-year Real Price, signaling underlying strength among long-term holders. Onchained notes that BTC has maintained above this line since October 2023, a sign of sustained investor confidence. If Bitcoin continues to hold this level, it could indicate the establishment of a new floor price, potentially setting the stage for new buying pressure. Additional analysis suggests that the recovery from this support zone can be understood as capital inflows from investors who see this price level as a strategic accumulation point. However, a break below the 2-year Real Price could trigger a deeper correction or a longer consolidation phase. Long-term liquidation amplifies market volatility. In a separate update, CryptoQuant analyst Darkfost highlighted an important event that shook the derivatives market. On April 6, the largest long Bitcoin liquidation event of the current bullish cycle occurred, wiping out approximately 7,500 BTC in long positions.

The liquidation marks the highest daily mandatory buying position closing volume since the bullish market began. According to Darkfost, this event is largely triggered by increased volatility and uncertainty stemming from concerns about U.S. economic policy. In particular, concerns about new tariffs under President Trump's administration have added pressure to the global market, including cryptocurrencies. Analysts emphasize that such liquidation events serve as reminders of the risks associated with high leverage positions in uncertain macroeconomic conditions. Darkfost wrote: This is a clear reminder that we need to be cautious during times of increased volatility like now. This is the time to pay attention and preserve your capital.