Bitcoin Price Prediction, April 2: BTC at $85,000–$9.41 Billion in Shorts Teeter as Tariffs Loom
Bitcoin’s price lingers around $85,000 as markets brace for President Donald Trump’s “Liberation Day” tariffs, set to hit on April 3rd and 4th. The cryptocurrency has eked out a modest 2.6% gain over the past 24 hours, but it’s stuck in a tight trading range, reflecting broader uncertainty. With financial markets on edge, the coming days could prove pivotal for Bitcoin and its traders.
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Short Sellers Face a $90,000 Reckoning
A staggering $9.41 billion in short positions hangs in the balance, at risk of liquidation if Bitcoin climbs to $90,000. Market data reveals a hefty buildup of shorts between $80,000 and $90,000, setting the stage for a potential short squeeze. Just last week, a push to $87,000 erased $77 million in shorts, hinting at the chaos that could unfold if the $90,000 barrier breaks.
Forced buybacks from squeezed sellers could ignite a rapid price surge, amplifying momentum. Crypto analyst Nic Puckrin of The Coin Bureau warns, though, that any rally needs a spike in trading volume to hold.
Tariffs Cast a Shadow, But Other Forces Lurk
The tariff uncertainty has Bitcoin price predicitons and risk assets in a holding pattern, but the cryptocurrency’s struggles predate Trump’s January 21 announcement of 10% Chinese import tariffs. Bitcoin had already faltered, unable to crack $100,000 in prior months, while trading below its 200-day average signals underlying weakness.
Beyond tariffs, a cooling job market—with U.S. job openings at a four-year low in February—has sapped appetite for risk-on assets. Inflation, relatively tamed in early 2025, may also steer investors toward stocks and real estate over Bitcoin. Even Trump’s hyped “strategic national Bitcoin stockpile” has fizzled, leaving traders disillusioned.
Breakout or Breakdown? The Price Path Ahead
Bitcoin’s next move is a coin toss. Puckrin predicts that softer-than-expected tariff news could spark a breakout, with $88,000 as the first target, though he sees $79,000 or even $73,000 as possible if panic sets in. The long-short ratio sits near 50-50, and 24-hour liquidations under $250 million suggest fading momentum.
Yet, hope flickers: low trading volume and a Fear & Greed Index tilting toward fear hint at a potential bottom. James Butterfill of CoinShares sees a silver lining, arguing that a weakening economy could eventually lift Bitcoin as stocks falter. For now, Puckrin sums it up: “Until tariffs clarify, this sideways grind persists.”
