Cryptocurrency markets can be monitored for recovery as the investor’s sentiment begins to stabilize compliance with the announcement of President Donald Trump’s tariff announcement – what some analysts call the peak of recent uncertainty in the market.
Trump revealed Reciprocal Importing Tariffs On April 2, which sent chills throughout the global market. The S&P 500 lost more than $ 5 trillionIts biggest collapse on the record, which exceeds the Pandemya crash induced in March 2020, according to Reuters.
However, some analysts see a silver lining in the tariff announcement.
“In my opinion, tariffs are the representation of uncertainty in the markets,” Michaël Van de Poppe, founder of MN Consultancy, told Cointelegraph. “The day of liberation was really the climax of that time, the climax of uncertainty. Now it’s open. Everyone knows the new playing field.”
Van de Poppe added that he believes Trump uses tariffs as a strategic move to stimulate domestic growth and reduce yields. “Tariffs are literally the only way to do that,” he said. “I wouldn’t be surprised if they were reversed for the next six to 12 months.”
Average tariff rate on US goods and imports. Source: JP Morgan, Ayesha Tariq
President Trump’s plan imposed a 10% baseline tariff on all US imports from April 5 and a higher “reward tariff” up to 54% in select countries with a greater trade shortage from April 9.
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Importing tariffs can be fed easing
However, the end of uncertainty may bring modified investment to crypto markets, leading to a recovery, Van de Poppe said:
“We will begin to see the rotation towards the crypto markets in the coming season where there is a more calm and peace in the markets where investors begin to buy sinking and understand that some things are already -undervalued.”
He noted that the economic impact of tariffs could rule the US Federal Reserve to lower interest rates and start a new twist of Volume easing (qe), a financial policy that involves fed purchase bonds to injeise economic liquidity.
Arthur Hayes, co-founder of Bitmex and Chief Investment Officer in Maelstrom, was predicted that Bitcoin could climb to $ 250,000 if the Fed formally enters a QE cycle.
Related: Satoshi Nakamoto turns 50 while Bitcoin has become US Reserve Asset
Trump’s tariff uncertainty still weighs emotion
At the downside, tariff-related uncertainty may continue to press the appetite of risk for a few weeks, according to Noelle Acheson, author of The Crypto is Macro Now Newsletter.
“We can expect President Trump to change his mind several times over the first few weeks,” Acheson told Cointelegraph. He added:
“With the higher uncertainty given to these markets, we can expect more dangerous behavior, even if some short-term bounces can bring comfort.”
“For crypto, the BTC continues to act like a short-term risk property while the analog counterpart gold will break through a full time high after another,” a development that could affect the Crypto investor’s sentiment in the short time, Acheson said.
Meanwhile, Crypto intelligence firm Nansen Estimated a 70% probability That the market can be lowered in June, depending on how tariff negotiations are emerging.
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