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.

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.” 

Related: White House Claims No Knowledge of 90-Day Tariff Pause

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. 

Related: Trump Demands Fed Rate Cuts—Could Bitcoin Be the Biggest Winner?

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.