President Trump’s recent decision to postpone proposed tariff increases for 90 days could potentially influence a BTC trend reversal. This decision, made on April 9, also introduced a reciprocal 10% tariff on all countries excluding China. Despite this gesture of goodwill, Trump also escalated the trade war with China by increasing tariffs on Chinese imports to the US by 125%, citing their lack of “respect for world markets.” This action initiated a significant market rally, with Bitcoin rising over 7% to $82,000 as investor anxiety was alleviated.

However, China’s retaliatory tariffs of 84% on US imports, effective from April 10, hint at an intensifying conflict. If talks fall through and the US-China trade war worsens post the 90-day hiatus, Bitcoin may experience another dip as markets recoil from the uncertainty.

Inflation fears and possible recessions are also contributing to Bitcoin’s potential downfall. Bitcoin has shown an increasing correlation with tech stocks and the overall market sentiment, experiencing sharp dips during periods of market unrest. For instance, Bitcoin suffered a nearly 10% dip from its highs earlier this year, slipping below $80,000, when Trump’s initial tariff announcements caused a stock sell-off.

Experts suggest that if trade tensions escalate further or central banks tighten monetary policy to counteract inflation, investors may abandon risky assets like Bitcoin, causing its price to drop. This implies that an unexpected economic shock, such as a Federal Reserve rate hike or a global growth slowdown, could trigger another crash, particularly if Bitcoin fails to break its current trading range of $80,000-$90,000.

Traders are currently watching the April 10 CPI data closely, which could shift the focus back onto the domestic economy. A weaker print would be advantageous, helping to offset the inflationary influence introduced by the blanket tariff policy.

Although one Federal Reserve meeting is scheduled in the interim, interest rates are unlikely to decrease before June. The chances of the Fed keeping interest rates unchanged at the May 7 meeting are 81.5%. If crucial price levels do not hold, this could further dampen Bitcoin’s appeal and potentially push its price down even more.

From a technical standpoint, important Bitcoin levels to observe include the 111-day moving average (MA) at $93,000, the 200-day MA at $87,000, and the 365-day MA at $76,000. As highlighted in Glassnode’s latest Week’s On-chain report, the price must now hold above the 365-day MA to avoid another downturn.

If Bitcoin fails to hold above $80,000, it could be on a downward trajectory again. In such a scenario, critical levels to observe below the 365-day EMA include the active realized price at $71,000 and, in extreme cases, the true market mean of around $65,000. If the tariff wars and stock market unrest persist, Bitcoin risks another dip to five-month lows at $71,000.

Reminder: This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

The post Could Bitcoin’s Value Plummet Once More? An In-depth Analysis appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

This surge represents a substantial departure from the S&P 500’s long-standing average volatility, which is typically under 20. However, Bitcoin has consistently experienced high volatility since its inception. In fact, according to BlackRock, “Bitcoin’s volatility remains high at 3.9 and 4.6 times that of gold and global equities, respectively.”

Trump’s trade war, which proposed tariffs ranging from 10% to 50% on imports from America’s major trading partners, has created crisis-like volatility in the stock market. Although Trump has since temporarily halted some of his imposed tariffs, the administration has escalated duties on Chinese imports to at least 145%. This volatility has also impacted other assets, most notably US Treasuries, which saw a significant sell-off this week. The 10-year Treasury bond yield is on pace for its most drastic increase since 2001.

Despite the “macro relief” brought about by the historic relief rally in the US equity markets on April 9 following Trump’s tariff pause, Bitcoin and its spot exchange-traded funds (ETFs) did not significantly benefit. Bitfinex analysts suggested in a note to Cointelegraph that “institutional confidence remains cautious in the near term.”

Bitfinex expressed optimism for the asset class from the second quarter through the end of 2025, citing “new narratives taking hold,” such as sovereign accumulation and the growth in real-world asset tokenization. Joe Burnett, Unchained’s Director of Market Research, echoed this sentiment, arguing that Bitcoin possesses more appealing attributes for long-term investors concerned about the impact of government policy and fiat risk on their portfolios. While the volatility spike in the S&P 500 is likely to be transient, its recent performance “challenges the belief that traditional markets are safer, less risky, or more stable.”

The post S&P 500 Temporarily Experiences Bitcoin-Like Volatility Amid Trump’s Trade War appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

One possible explanation for the dwindling interest is the increasing prospect of an economic downturn. “You can clearly see that credit side liquidity has dried up,” said Michael Weidner, co-head of global fixed income at Lazard Asset Management. Essentially, investors are flocking towards safer assets such as government bonds and cash holdings, potentially leading to a credit squeeze.

A credit squeeze signifies a sudden drop in the availability of loans, resulting in decreased business investment and consumer spending. This can occur regardless of US Treasury yields, as an increase in perceived borrower risk can independently limit credit supply.

Ross Mayfield, a strategist at RW Baird, pointed out that even if the US Federal Reserve opts to lower interest rates to stabilize volatile markets, it might only offer companies temporary respite. Mayfield reportedly said: “In a tariff-induced stagflationary environment, both investment grade and high yield corporate borrowers could struggle as their debt costs increase.” Despite the 10-year US Treasury yield remaining steady compared to the previous month, investor desire for corporate debt is weak.

Dan Krieter, director of fixed income strategy at BMO Capital Markets, informed Reuters that corporate bond spreads have seen their largest one-week expansion since the regional banking crisis in March 2023. The spread between corporate bonds and government bonds represents the additional risk investors undertake when lending to companies.

Investors are anxious that even if the US Federal Reserve reduces interest rates, it might not be sufficient to restore economic confidence. This fear also explains why the US Consumer Price Index (CPI) for March— at 2.8%, the slowest annual rise in four years— didn’t positively influence stock markets. “This is the last clean print we’re going to see before we get those tariff-induced inflation increases,” Joe Brusuelas, RSM chief economist, told Yahoo Finance.

Investors seem to be awaiting stability in the corporate bond market before regaining confidence in Bitcoin ETF inflows. As long as the risk of recession remains high, investors will likely prefer safer assets such as government bonds and cash holdings. A change in the perception towards Bitcoin’s fixed monetary policy and censorship resistance would be required to break this correlation. However, triggers for such a change remain uncertain and could take months or even years.

This article is solely for informational purposes and should not be construed as legal or investment advice. The author’s views, thoughts, and opinions expressed herein do not necessarily represent those of Cointelegraph.

The post Bitcoin ETFs Shed $772M Amid Tariff-Inspired Inflation Fears appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Despite the turmoil shaking the equities markets in the wake of the April 4 Wall Street opening, the Bitcoin (BTCUSD) price managed to stave off the mayhem by maintaining above the $82,000 mark.

US stocks recorded unprecedented losses with forecasts hinting at a drawn-out trade war. Data from CoinTelegraph Markets Pro and TradingView revealed Bitcoin’s volatile swings within lower timeframes as the daily peak near $84,700 dissipated with a $2,500 drop at the onset of the US trading session.

The fear of a prolonged US trade war followed by a possible recession triggered the market decline. The S&P 500 and Nasdaq Composite Index both experienced an additional 3.5% dip post-opening.

The Kobeissi Letter, a trading resource, referred to the imposed tariffs as the commencement of the “World War 3” of trade wars. The S&P 500 registered two-day losses surpassing -8%, equating to -$3.5 trillion in market cap, the most substantial 2-day fall since the 2020 pandemic.

The Nasdaq 100 made records the previous day with its largest single-day points loss to date.

Despite the surpassing expectations of the March nonfarm payrolls print, US jobs data had little effect on the already panicked markets. However, market expectations for interest rate cuts from the Federal Reserve increased, with a 40% chance predicted for the Fed’s May meeting according to data from CME Group’s FedWatch Tool.

Bitcoin managed to avert major breakdown, prompting market analysts to seek validation for inherent BTC price resilience. Rekt Capital, a popular trader and analyst, found the longer-timeframe indicators promising. He pointed out the early signs of an emerging Exaggerated Bullish Divergence based on the relative strength index (RSI) behavior on the daily chart.

Another trader, Cas Abbe, also commented on the comparatively robust trading of Bitcoin amid the risk-asset meltdown. He noted that despite the stock market experiencing its worst day in 5 years, Bitcoin did not hit a new low.

Historically, BTC bottoms out before the stock market, thereby suggesting that $76.5K was the bottom. Now, he waits for a breakthrough above the $86.5K level for further upward movement.

Previously, CoinTelegraph reported on BTC price bottom targets, including the old all-time highs of $69,000 from 2021.

This article does not offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should perform their own research when making a decision.

The post Bitcoin Enthusiasts Uphold $80K Backstop Amidst Trade War Tensions Throwing US Stock Market into Turmoil appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Bloomberg reports reveal that Coinbase’s stock has seen a decline of over 30% since the quarter’s commencement, replicating its worst performance since the late 2022 FTX exchange crash. This downturn is an echo of a larger trend impacting almost all major stocks linked to crypto, inclusive of Galaxy Digital Holdings (GLXY.TO), Riot Platforms (RIOT), and Core Scientific (CORZ).

The cryptocurrency market at large is facing turbulence, with Bitcoin (BTC) experiencing a drop of over 20% from its peak, and Ethereum (ETH) losing more than 45% of its value. These changes are occurring in the backdrop of President Donald Trump’s intensification of a “global trade war”, inciting worries about the US economy’s health. This has been further intensified by economic data, propelling the S&P 500 Index (GSPC) towards its poorest quarter since mid-2022.

Owen Lau, an analyst at Oppenheimer, pointed out that the current market situation isn’t primarily dictated by fundamental factors. Lau emphasized that macroeconomic aspects such as tariffs and potential trade war are significantly swaying investor sentiment. The increasing risk of a recession has reportedly contributed to the uneasiness, causing higher-risk crypto-linked stocks to exhibit even more volatility than Bitcoin itself.

The current status of the cryptocurrency market starkly contrasts the optimistic sentiment that dominated the scene at the year’s beginning, post-Trump’s election. Bitcoin hit an all-time high of over $109,000 on Inauguration Day. However, Bitcoin prices took a hit after Trump announced a strategic reserve for the leading crypto, but failed to allocate taxpayer money to expand it. Now, Bitcoin trades around $83,000, still above pre-election numbers, but far from its record high.

Despite the downturn, the cryptocurrency industry continues to gain traction in Washington and is progressively aligning with traditional financial systems. Yet, this increasing influence hasn’t resulted in a market rebound. Connor Loewen, a cryptocurrency analyst at 3iQ, expressed doubt about the current investor sentiment, stating, “What we saw a couple of months ago, I don’t know how much crazier it can get than that. I think we’re going to have to be looking for new catalysts.”

The post Coinbase Shares Plunge 30% in Q1, Mirroring Post-FTX Crash Depths appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Trump’s First White House Crypto Summit Scheduled for March 7

US President Donald Trump will orchestrate the first-ever White House Crypto Summit on March 7, facilitating a roundtable discussion among industry thought-leaders on regulatory frameworks, stablecoin supervision, and Bitcoin’s potential role in the US monetary system.

The participants will comprise “notable founders, CEOs, and investors from the crypto industry,” along with members of the President’s Working Group on Digital Assets, as per a statement forwarded by the White House “AI and crypto czar,” David Sacks, in a March 1 X post. Sacks and Bo Hines, the executive director of the Working Group, will preside over the summit.

Sacks was appointed as the White House Crypto and AI Czar on Dec. 6, 2024, with the mandate to “establish a legal framework so the Crypto industry can thrive in the U.S.,” as per Trump’s announcement.

Chicago Mercantile Exchange Group Set to Roll Out Solana Futures on March 17

The Chicago Mercantile Exchange (CME) Group, a renowned global derivatives exchange, has announced its intention to launch Solana (SOL) futures contracts on March 17, contingent on approval from United States financial regulators.

As stated in the Feb. 28 announcement, market participants will be able to trade in micro contracts of 25 SOL or standard contract sizes of 500 SOL, with all contracts being cash-settled. CME Group already offers futures and options contracts for Bitcoin (BTC) and Ether (ETH) to investors aiming to hedge against the highly volatile nature of these digital assets.

The introduction of Solana futures contracts gives traditional finance investors more exposure to the crypto markets and injects fresh capital into the crypto landscape, which should bolster prices.

Bitcoin Risks Further Drop if $75K Support Fails Amid Macroeconomic Concerns

Bitcoin could be headed for further downturn if it breaches the crucial $75,000 support threshold due to mounting fears of a possible trade war between the United States and China.

Bitcoin’s (BTC) price has dipped by over 6.5% in the past 24 hours, falling beneath a low of $78,197, last observed on Nov. 10, 2024, according to data from Cointelegraph Markets Pro.

Analysts attribute the current slump to macroeconomic worries related to a potential trade conflict between the US and China, sparked by US President Donald Trump’s decision to impose import tariffs. Ryan Lee, chief analyst at Bitget Research, believes these concerns led to Bitcoin losing the $80,000 support.

However, some analysts fear that Bitcoin’s correction may force the leading cryptocurrency to revisit the $70,000 mark. Based on its correlation with the global liquidity index, Bitcoin’s lowest bid price might drop below $70,000 towards the end of February, following its peak near $110,000 in January.

The post Today’s Crypto Highlights: Trump’s White House Summit, CME’s Solana Futures, and Bitcoin’s Potential Drop appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The White House Crypto Summit, scheduled for March 7, will see industry leaders gather to discuss regulatory strategies, stablecoin management, and the prospective role of Bitcoin in the U.S. financial landscape. Attendees will include esteemed founders, CEOs, and investors from the crypto industry, as well as members of the President’s Working Group on Digital Assets, as per an announcement by the White House “crypto and AI czar,” David Sacks, on March 1. Sacks and Bo Hines, the executive director of the Working Group, will chair this summit. President Trump appointed Sacks to his current position on Dec. 6, 2024, with the mandate to create a legal framework for the crypto industry to thrive in the U.S.

In other news, the CME Group announced the introduction of Solana (SOL) futures contracts on March 17, pending U.S. financial regulators’ approval. As per the February 28 announcement, market players will have access to micro contracts of 25 SOL or standard contract sizes of 500 SOL, all cash-settled. With its existing Bitcoin (BTC) and Ether (ETH) futures and options contracts, the addition of Solana futures will provide traditional finance investors with more exposure to the crypto markets and support prices with new capital infusions.

Nevertheless, concerns over a potential trade war between the U.S. and China due to President Trump’s import tariffs decision may drive Bitcoin’s value below the critical $75,000 support level if it fails to hold. Bitcoin’s price has already dipped more than 6.5% in the past 24 hours, reaching a low of $78,197, last seen on Nov. 10, 2024. Analysts warn that if Bitcoin’s correction continues, it could revisit the $70,000 mark.

The post Crypto News Recap: Trump’s White House Summit, Solana Futures by CME Group, and Bitcoin Price Concerns appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

In addition, the White House plans to retaliate against countries that impose import charges on American goods. “If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump asserted.

The crypto market reacted quickly to the news, with a brief downturn observed across all cryptocurrencies. However, the market soon showed signs of recovery. Bitcoin’s price, which had momentarily dropped to $94,000, rebounded to over $97,000, as per CoinMarketCap data.

Similarly, Ethereum also demonstrated resilience, recovering to nearly its pre-announcement level after a brief dip to $2,537. The total cryptocurrency market cap, which had fallen from $3.15 trillion to $3.10 trillion, also revived to $3.13 trillion, according to CoinMarketCap.

The Crypto Fear & Greed Index, a tool measuring market sentiment for Bitcoin and other cryptocurrencies, has remained in the ‘fear’ domain for the past week, averaging a score of 44 out of 100. The latest update on Feb. 10 saw a slight drop in this score to 43, from 46 the previous day.

Trump has also expressed intentions of imposing tariffs on the EU, superconductors, oil, gas, steel, and copper. On Feb. 1, he implemented 25% tariffs on significant trading partners, Canada and Mexico, and a 10% tariff on China, causing both stock and crypto markets to plummet. Bybit’s co-founder and CEO, Ben Zhou, estimates the liquidations could range from $8 billion to $10 billion.

Notably, the crypto market bounced back after tariffs on Mexico and Canada were temporarily suspended for 30 days from Feb. 3. However, Trump has not dismissed the possibility of reinstating these levies once the suspension period ends.

The post Bitcoin Reacts to Trump’s Decision to Impose 25% Tariffs on Steel and Aluminum appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Bitcoin’s journey over the past 24 hours has been a rollercoaster, punctuated by uncertainty over U.S. trade tariffs on Mexico and Canada. BTC experienced a fleeting rally to $102,000 after U.S. President Donald Trump announced a 30-day delay in imposing tariffs on these North American countries.

However, the implementation of U.S. tariffs on China today sparked a sharp downturn, forcing BTC below the $100,000 mark. In response, China’s Ministry of Finance unveiled new countermeasures. Starting February 10, China will levy an additional 15% tariff on coal and liquefied natural gas, coupled with a 10% tariff on agricultural equipment, crude oil, and select vehicles.

Furthermore, Beijing accuses the U.S. of breaching World Trade Organization (WTO) rules with its unilateral tariff policies. The Chinese Ministry of Commerce also announced plans to tighten export controls on key raw materials like molybdenum, indium, bismuth, tellurium, and tungsten, citing national security as the reason.

As trade hostilities between the U.S. and China intensify, market analysts predict increased volatility in the crypto market. Well-respected crypto strategist Michael van de Poppe shared his perspective, expressing optimism that Bitcoin would hit new all-time highs in February, provided it stays above $93K.

Crypto trader and investor Phoenix suggested that BTC might find a new trading range amid the ongoing trade war. However, history indicates that increased tariffs could spell bad news for cryptocurrencies. Web3 enthusiast merts.eth highlighted in an X post that BTC suffered a 65% fall in 2018 when Trump first instigated a trade war with China. The impact wasn’t just confined to digital assets, as the S&P 500 also fell 12% in the weeks post-tariff implementation.

As Bitcoin battles to maintain the $100,000 price point, worries are growing about a possible further price drop. Crypto analyst Ali Martinez recently noted that if BTC can’t hold the $97,190 support level, the leading digital asset could face more hardships. At the time of writing, BTC’s trading price is $99,961, marking a 1% increase in the past 24 hours.

The post Bitcoin Grapples with $100K Bar Amid Trade Tensions Between U.S. and China: Is More BTC Downturn on the Horizon? appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

During the past weekend, the world of cryptocurrency witnessed a tremendous decline, wiping out over $400 billion from its total value. The downfall was a reaction to a series of economic decisions by former U.S. President Donald Trump. He imposed a 25% tariff on imports from Canada and Mexico, including energy commodities like oil and natural gas, along with a 10% tax on several goods produced in China. This was his attempt to rectify trade imbalances and combat intellectual property theft. Consequently, the affected nations retaliated with their own set of levies on U.S. goods.

The cryptocurrency market reacted to this brewing trade conflict by plummeting 12% at the last count, leading to over $2.2 billion in liquidations. Interestingly, as the Bitcoin price fell, the Kimchi premium ascended, indicating a possible change in trade patterns.

South Korea’s stringent capital controls give rise to the Kimchi premium by creating an imbalance that minimizes arbitrage opportunities. It becomes nearly infeasible for cryptocurrency purchased outside the country to be resold within it. Traditionally, a high premium signaled a high demand from Korean investors for Bitcoin. Analysts, however, argue that the recent rise is not a result of local buying but a reaction to external factors, with the strengthening U.S. Dollar Index (DXY) being the primary suspect.

Ki Young Ju, Blockchain researcher and CEO of CryptoQuant, observed that the premium rose when Bitcoin hit its local low point, not because Korean traders were buying the dip, but because the cryptocurrency was being converted into U.S. dollars. This implies that investors were shedding their holdings in response to larger market pressures instead of accumulating Bitcoin.

The U.S. dollar has seen considerable strengthening recently, creating a downward pull on the Bitcoin price. Consequently, many traders in South Korea have been shifting their coins into USD rather than the Korean won, unintentionally expanding the gap in Bitcoin’s price between Korean and international exchanges.

“Few Koreans are converting BTC into KRW,” Ju noted on Twitter. “Other countries are likely seeing a similar trend.”

The post South Korean Bitcoin Premium Peaks at 3-Year High Amidst Market Chaos appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.