The price of Bitcoin (BTC) has consolidated between $85,000 and $88,000 this week and, as of press time on Friday, is approaching the lower limit of the consolidation range. A report from K33 Research explains that markets are relatively calm and preparing for volatility while investors digest the tariff announcements. PlanB’s Stock-to-Flow (S2F) model shows that Bitcoin appears extremely undervalued compared to gold and the real estate market.
Bitcoin Price Remains Calm Ahead of Trump’s Tariff Announcements
Bitcoin started the week on a positive note, reaching a high of $88,765 on Monday after recovering 4.25% the previous week. This rally was fueled by a Wall Street Journal report on Monday, which indicated that the White House would narrow its approach to tariffs set to take effect on April 2, likely omitting several industry-specific tariffs and instead imposing reciprocal levies on a number of countries that account for the majority of foreign trade with the United States. The news sparked optimism in the crypto market that day, with major cryptocurrencies rising and Bitcoin surpassing the $88,000 mark.
Tuesday’s K33 Research report, “Ahead of the Curve,” highlighted that current market conditions are relatively calm, with volatility on the horizon as the market absorbs the tariff announcements. The report explains that the market calm could continue until April 2, the scheduled date for the announcement of major reciprocal tariffs by United States (US) President Donald Trump. This is shaping up to be a significant market event, likely to reignite activity in both crypto and broader financial markets, similar to the strong moves seen following tariff developments in Canada and Mexico earlier this quarter.
If Trump softens his stance, markets could rally. If the president remains vague, volatility could hit both long and short positions. If he takes a hard line, a sharp decline—similar to previous tariff-related declines—is likely, as shown in the chart below.
In a back-and-forth scenario, we could see a market environment similar to that of February and early March, when tariffs dominated news coverage. The US economy remains strong, but is widely expected to weaken due to the tariffs—a risk that has already been largely priced in by most economists,” says the K33 analyst.
On Wednesday, however, President Trump announced a 25% tariff on auto imports, set to take effect on April 3, along with the long-awaited reciprocal tariffs against the US’s largest trading partners. “Any further retaliation from these targeted economies could bring a new wave of uncertainty to an already volatile global trade landscape,” says the QCP Capital analyst.
To learn more about how the crypto markets would react to this tariff policy, FXStreet interviewed some crypto market experts in this report.
Corporate interest in BTC grows as GameStop joins the group of holders
Corporate interest in Bitcoin continues to grow. This week, GameStop (GME), a US video game retailer, announced on Tuesday that it has updated its investment policy and now considers Bitcoin a treasury reserve asset. The following day, the company announced in a press release its intention to issue $1.3 billion in 0% convertible senior notes in a private offering to investors.
GameStop follows in the footsteps of MicroStrategy, which acquired 6,911 BTC for $584.1 million earlier this week and currently holds 506,137 BTC, acquired for $33.7 billion at an average price of $66,608 per Bitcoin, making it the largest corporate holder of the cryptocurrency.
This move is in line with a broader trend of corporate adoption of Bitcoin, spurred by US President Donald Trump’s recent executive order establishing a strategic reserve of cryptocurrencies using government-owned tokens. GME had $4.7 billion in cash and cash equivalents as of February 1.
Bitcoin appears to be undervalued compared to gold and the real estate market.
PlanB, the inventor of the stock-to-flow (S2F) model, wrote in his post on X that Bitcoin is extremely undervalued compared to gold and the real estate market.
He explains that Bitcoin’s market capitalization is $2 trillion, while gold’s is $20 trillion. Bitcoin’s scarcity (S2F ratio) is 120 compared to gold’s 60, indicating growth potential in this cycle.
The “Glassnode ‘Forging Long-Term Holders’ Report” highlights that the Bitcoin market is trading in a new range between $78,000 and $88,000. On-chain profit and loss taking is decreasing in magnitude, indicating a weaker demand profile and less pressure on the sell side.
The report further explains that short-term holders are under significant financial pressure, as a large portion of their holdings are now underwater compared to their original cost base, as shown in the chart below.
While the STH cohort dominates the losses, the long-term holder cohort is returning to a phase of accumulation, and we expect their total supply to grow as a result in the coming weeks and months,” said the Glassnode analyst.
Bitcoin’s Technical Outlook Shows a Range-Bound Market
After closing above the 200-day exponential moving average (EMA) on Sunday, Bitcoin’s price has consolidated between $85,000 and $88,000 throughout the week. As of press time on Friday, BTC is trading slightly lower and approaching the lower boundary of the consolidation zone.
If BTC falls below the consolidation zone, which roughly coincides with the 200-day EMA at $85,500, the decline could extend and retest the next support level at $78,258.
The Relative Strength Index (RSI) indicator on the daily chart is consolidating around the neutral level of 50, indicating a lack of momentum.
BTC/USDT Daily Chart
However, if the 200-day EMA holds as support and BTC breaks and closes above the descending trendline (drawn by connecting several highs since mid-January), which roughly coincides with the upper boundary of the recent range, this could extend the recovery to retest the key psychological level of $90,000 and the March 2 high of $95,000.
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