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How Trump’s Tariffs Impact Crypto and Bitcoin’s Potential

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Trump’s tariff policies shook the crypto market last week. Though countries like Mexico and Canada achieved a one-month postponement, tariffs on China have already been enacted. 

BeInCrypto spoke with ‬Kristian Haralampiev, Structured Products Lead at Nexo‬, to understand why Trump’s tariffs caused markets to panic, what the crypto markets should expect 30 days from now, and the areas where the industry could find opportunities.

Trump Tariff Announcements Shake Crypto Market

In the first week of February, US President Trump announced that he would impose a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. Additionally, he applied a 10% levy on Canadian energy resources. 

These announcements triggered widespread reactions across traditional and crypto markets. Though these tariffs were said to be effective this Tuesday, global financial markets began selling off the prior weekend in preparation.

Though cryptocurrency markets are not inherently tied to trade deficits in the same way equities might be, they still took a significant hit. Following Trump’s tariffs announcements, the total crypto market capitalization contracted by approximately 8% in just one day– falling to about $3.2 trillion.

Bitcoin dropped to a minimum of $91,281, while Ethereum fell as low as $2,143. These fluctuations resulted in billions being wiped from the market. According to Coinglass, total liquidations exceeded $2.23 billion in a 24-hour period. No digital asset went unharmed.

A day before the executive orders were to take effect, Trump agreed to suspend the tariffs against Mexico and Canada for one month. However, China and the US did not reach a negotiation, and the US’s 10% levy on Chinese imports went into effect.

The crypto markets responded favorably to these postponements. XRP, which had dropped by over 25% in response to Trump’s tariff announcements, quickly jumped up 6% after news of the 30-day pause. Meanwhile, Bitcoin surged to $102,599, fueled by renewed investor optimism.

However, several questions remain about what will happen to the crypto market one month from now, when the threat of tariffs is again on the table. 

Tariffs’ Impact on Economy Dynamics

Tariffs are taxes on imports or exports that governments use to achieve strategic goals such as trade deals or to reduce trade deficits.

Regarding Trump’s tariffs, the US imports more goods from Canada, Mexico, and China than it exports, meaning it faces a trade deficit with all three countries.

The connection between trade deficits and tariffs is important because of the potential consequences for equities and cryptocurrencies. Tariffs can increase the prices of imported goods, potentially leading to inflation as these costs are passed on to consumers.  

In turn, higher costs may decrease consumer demand for those goods, resulting in reduced imports and lower profits for foreign companies, potentially leading them to withdraw from the US market.  

Consequently, tariffs could raise foreign goods prices, decrease import volumes, and diminish corporate profits, incentivizing investors to reduce their equity holdings, seek less risky investments, and lower their exposure to cryptocurrency.

The cryptocurrency market’s decline following Trump’s announcements illustrates this phenomenon. 

While cryptocurrency and equity markets sometimes exhibit independent behavior, significant events can create broader market disruptions, impacting seemingly unrelated assets due to prevailing market sentiment.

A Possible Opportunity for Crypto

Amidst considerable market volatility, a JPMorgan Chase survey of institutional trading clients found that 51% predict inflation and tariffs will be the dominant forces shaping global markets in 2025. The survey also highlighted market volatility as a major concern, cited by 41% of respondents, a significant increase from 28% in 2024.

However, some industry experts have pointed to a silver lining

According to Haralampiev, Trump tariff policies, while likely to create volatility in cryptocurrency markets, may also present opportunities for Bitcoin’s long-term rise.

“The‬‭ introduction‬‭ of‬‭ steep‬‭ tariffs,‬‭ particularly‬‭ on‬‭ Chinese‬‭ imports,‬‭ would‬‭ likely‬‭ disrupt‬‭ global‬‭ trade‬‭flows,‬‭ increase‬‭ production‬‭ costs,‬‭ and‬‭ contribute‬‭ to‬‭ inflationary‬‭ pressures.‬‭ Historically,‬‭ such‬‭ economic‬‭ shifts‬‭ have‬‭ driven‬‭ investors‬‭ toward‬‭ alternative‬‭ assets‬‭ that‬‭ serve‬‭ as‬‭ hedges‬‭ against‬‭ currency‬‭ devaluation‬‭ and‬‭ macroeconomic‬‭ uncertainty.‬‭ Cryptocurrencies,‬‭ particularly‬‭ Bitcoin,‬‭ have‬‭ increasingly‬‭ been‬‭ viewed‬‭ as‬‭ having this potential, hinting at bullish signals for the asset class,” Haralampiev told BeInCrypto. 

In other words, as economic tensions escalate, Bitcoin’s ascent will accelerate. 

“All‬‭ of‬‭ this‬‭ could‬‭ become‬‭ a‬‭ tailwind‬‭ for‬‭ Bitcoin‬‭ and‬‭ leading‬‭ cryptocurrencies,‬‭ as‬‭ their decentralized nature could be viewed as an attractive proposition for investors.‬‭ If‬‭ inflation‬‭ remains‬‭ high,‬‭ demand‬‭ for‬‭ assets‬‭ that‬‭ serve‬‭ as‬‭ a‬‭ hedge‬‭ —‬‭such‬‭ as‬‭ Bitcoin‬‭—‭ could‬‭ increase,‬‭ especially‬‭ if‬‭ the‬‭ US‬‭ government‬‭ keeps‬‭ signaling‬‭ a‬‭ willingness‬‭ to‬‭ incorporate digital assets into its broader economic strategy,” Haralampiev added.

Even though Bitcoin could hedge against the inflation created by tariffs, these policies would also generate significant supply chain disruptions. 

Trump’s 10% levies on China, which are already in effect, create significant uncertainty given the role of Chinese imports in activities like cryptocurrency mining.

Following Trump’s tariff announcements, the share prices of Bitcoin mining companies MARA, Riot Platforms, and Hut 8 declined, with losses exceeding 8% in some cases. These losses made sense, given that Chinese companies dominate the industrial Bitcoin mining equipment market. 

American Bitcoin mining companies rely heavily on‬‭ Chinese-manufactured‬‭ Integrated Circuits for Specific Applications (ASIC)‬‭ equipment,‬‭ which is used to optimize the mining process. Bitmain and MicroBT are among the main suppliers. 

“‬‭The‬‭ US‬‭ mining‬‭ industry‬‭ relies‬‭ heavily‬‭ on‬‭ specialized‬‭ mining‬‭ hardware‬‭ from‬‭ China,‬‭ meaning‬‭ higher‬‭ tariffs‬‭ could‬‭ significantly‬‭ increase‬‭ equipment‬‭ costs.‬‭ This‬‭ would‬ temporarily‬‭ squeeze‬‭ profit‬‭ margins‬‭ for‬‭ miners‬‭ and‬‭ potentially‬‭ slow‬‭ mining‬‭ expansion‬ in‬‭ the‬‭ short‬‭ term. Should tariffs drive up costs‬‭ in the short term, US-based miners could look to further optimize operations,‬‭ embrace emerging technologies like immersion cooling, or seek partnerships with‬‭ domestic hardware manufacturers to maintain competitiveness,” Haralampiev explained.

Haralampiev also suggested that this disruption to a key part of the cryptocurrency mining supply chain should be a wake-up call to the industry.

The Need for Domestic Manufacturers

The crypto industry has long recognized the need for increased domestic Bitcoin mining in the United States to lessen dependence on foreign suppliers. This reliance on overseas products has been criticized for hindering decentralization and weakening supply chain resilience.

Some industry players have already taken initiatives to enhance efficiency in the Bitcoin mining field. Last June, Auradine, a Silicon Valley-based Bitcoin miner manufacturer, strategically partnered with virtual power plant providers CPower and Voltus.

Auradine is an American company that develops ASIC units engineered in the United States. These units help miners optimize electricity consumption, offering a competitive advantage. Auradine aims to provide performance and integration through this partnership without relying on third-party components.

Yet, several projects like Auradine are needed to compete with established Chinese suppliers and fulfill the demand for manufacturing equipment required for Bitcoin mining.

“By‬‭ making‬‭ foreign‬‭ mining‬‭ equipment‬‭ more‬‭ expensive,‬‭ tariffs‬‭ could‬‭ encourage‬‭ investment‬‭ in‬‭ domestic‬‭ mining‬‭ technology‬‭ and‬‭ energy-efficient‬‭ solutions.‬‭ The‬‭ US‬‭ already‬‭ has‬‭ a‬‭ competitive‬‭ advantage‬‭ in‬‭ renewable‬‭ energy‬‭ sources,‬‭ particularly‬‭ in‬‭ states‬‭ like‬‭ Texas,‬‭ which‬‭ have‬‭ abundant‬‭ wind‬‭ and‬‭ solar‬‭ power,” Haralampiev said.

The United States will need to implement a similar strategy for artificial intelligence (AI) development.

US Reliance on Outsourced Semiconductors

The United States and China are in a tight-knit race to dominate AI technologies. Semiconductors play an important in this race. These small but crucial components play a significant role in determining global technological leadership.

Semiconductors are fundamental to modern technology, forming the basis of virtually all electronic devices. They enable the development of increasingly powerful and energy-efficient systems that drive innovation across industries.

These components are critical for expeditiously and accurately processing massive datasets, particularly in AI and data analytics. They power applications from predictive analytics to natural language processing, enabling data-driven insights and decision-making.

According to data from the Observatory of Economic Complexity, in 2022, the United States ranked as the world’s third-largest importer of semiconductor devices, with imports totaling $16.6 billion. The leading suppliers of these imports were Vietnam ($4.57 billion), Malaysia ($2.13 billion), Thailand ($1.66 billion), South Korea ($1.54 billion), and China ($962 million).

China was the largest exporter of semiconductors in 2022. Source: Observatory of Economic Complexity.
China was the largest exporter of semiconductors in 2022. Source: Observatory of Economic Complexity.

US semiconductor imports increased by 13% in value during early 2023 despite ongoing efforts to boost domestic production, according to Trade Finance Global. This increase demonstrates the nation’s continued dependence on foreign chip suppliers.

With Trump enacting tariffs on China, investors are also worried about their impact on semiconductor imports. 

A Call for US-based Innovation

Similar to his argument regarding Bitcoin mining, Haralampiev contends that the United States must significantly increase efforts to onshore semiconductor manufacturing.

“By‬‭ strategically‬‭ investing‬‭ in‬‭ local‬‭ semiconductor‬‭ manufacturing‬‭ and‬‭ mining‬‭ hardware‬‭ production,‬‭ the‬‭ U.S.‬‭ could‬‭ reduce‬‭ its‬‭ reliance‬‭ on‬‭ Chinese‬‭ imports‬‭ and‬‭ make‬‭ its‬‭ crypto-mining‬‭ industry‬‭ more‬‭ self-sufficient,” he said. 

By doing so, tariffs would have less of an impact.

“The US is also looking at‬‭ advancements in AI, which means its semiconductor industry will eventually catch up‬‭ in terms of cost-production, where it could currently lack, solidifying the country’s‬‭ dominance in both mining infrastructure and chip production,” Haralampiev added.

Though Trump has not made any announcements about semiconductor production, he has announced other AI-related initiatives.

Last month, Trump announced Stargate, a $500 billion joint venture between Oracle, SoftBank, and OpenAI, to build massive data centers and infrastructure that support AI development. 

However, it is presently unclear how much the federal government will contribute to this massive sum and how much will come from Stargate’s constituent companies.

Weathering the Storm

While Trump’s tariff policies have generated concern, Haralampiev views them as part of a recurring pattern of similar past events in US history.

“This‬‭ transition‬‭ aligns‬‭ with‬‭ a‬‭ broader‬‭ historical‬‭ cycle‬‭ of‬‭ globalization‬‭ vs.‬‭ isolationism,‬‭ where‬‭ economies‬‭ shift‬‭ between‬‭ prioritizing‬‭ global‬‭ integration‬‭ and‬‭ domestic‬‭ self-reliance,” he told BeInCrypto.

He also noted that crypto-related industries have weathered comparable challenges and ultimately prevailed.

“Bitcoin mining has historically proven to be highly adaptable in the face of‬‭ policy shifts, such as China’s mining ban in 2021, which saw a rapid relocation of‬‭ mining infrastructure to North America and Central Asia,” Haralampiev added. 

Future economic scenarios are uncertain, but their potential impact on cryptocurrency markets is clear. Whether that impact is positive or negative will depend on how these scenarios develop.

Disclaimer

Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP Price To $110? Bollinger Bands Creator Reveals Why It Will Become A Market Leader

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The XRP price could be staging a parabolic rally to new all-time highs of $110. While an analyst shares a technical analysis to back this ambitious target, Bollinger Bands creator John Bollinger declares XRP to be a market leader in the crypto space. 

Analyst Predicts New XRP Price Target To $110

In a rather lengthy X (formerly Twitter) post, market expert Egrag Crypto went deep into his analysis for the XRP price, basing his predictions on its Elliott Wave structure. The crypto analyst confidently forecasted that XRP was heading towards a new $110 ATH. This bullish target would represent a whopping 3,974% increase from its current market value.

Related Reading

Firstly, Egrag Crypto outlines XRP’s five-wave structure, underscoring that each wave could push the cryptocurrency to a new target. The analyst reveals that XRP is currently in Wave 2 of its Elliott Wave structure and is closely approaching Wave 3, which is expected to trigger the most explosive increase.

In Wave 1, XRP saw an impressive 733% increase to new highs. However, in its current Wave 2, Egrag Crypto highlights that its 2017 fractal appears more profound. With the formation of a Double Bottom pattern, the analyst has predicted a potential price breakdown for the cryptocurrency. 

XRP
New target emerge for XRP at $110 | Source: Egrag Crypto on X

Egrag Crypto further forecasts that Wave 3 will trigger a reversal and cause the price to skyrocket by 1,185%. This massive price increase would effectively place the XRP price at a potential target between $22 and $24. For a more conservative target, the analyst estimates a surge of around $22 to $24. 

For Wave 4, Egrag Crypto predicts another major retracement similar to Wave 2. However, this time, the analyst believes XRP could decline by either 14.6%, 23.6%, or 38.2% from Wave 3’s price high. This correction would mark a 65% drop from Wave 3’s peak, bringing the cryptocurrency’s price down to $8. He also highlights a worse-case bearish scenario where XRP crashes as low as $3.4. 

Notably, Egrag Crypto shares three potential bullish targets for Wave 5, the final part of the Elliott Wave Structure. He forecasts that the altcoin could surge between $32 to $48, $60 to $70, or $95 to $110. The analyst has based his optimistic forecast on past cycle trends, where 2017 saw a major price rally for XRP. 

Bollinger Bands Creator Says The Asset To Become Leader

In other news, Bollinger, the creator of the renowned Bollinger Band technical analysis tool, has highlighted XRP in his latest post, questioning whether it could take a leading role in the crypto market. The technical analyst asserts that Ripple has held up better than other primary crypto vehicles.

Considering its legal battles with the US SEC and present regulatory challenges, Ripple continues to remain resilient, aiming to gain clarity during the final stages of the five-year-long lawsuit. Meanwhile, the XRP price, which is currently trading at $2.4, has experienced a recent uptick, increasing by almost 4% in the last day, according to CoinMarketCap.

XRP
XRP trading at $2.4 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from Adobe Stock, chart from Tradingview.com



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Bitcoin ETF investors hold strong despite a 25% BTC price drop: Here’s why

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  • US Bitcoin ETFs collectively manage $115 billion in assets
  • Since mid-February, Bitcoin ETFs have witnessed total outflows of nearly $5 billion
  • Bitcoin’s decline continues as selling pressure intensifies

Even as Bitcoin’s price has tumbled 25% since the start of 2025, a staggering 95% of investors in US spot Bitcoin ETFs have held firm, resisting the urge to sell.

Despite market volatility and macroeconomic uncertainties, Bloomberg data suggests that the overwhelming majority of ETF holders remain unfazed, showcasing strong conviction in Bitcoin’s long-term potential.

Bitcoin ETFs show resilience 

Bloomberg ETF strategist James Seyffart reported that inflows into Bitcoin ETFs have slightly declined to $35 billion, down from their $40 billion peak.

However, this still represents over 95% of investor capital remaining in ETFs, even as Bitcoin’s price struggles.

Institutional investors, including Goldman Sachs, continue to maintain significant exposure, with more than $1.5 billion invested in Bitcoin ETFs.

As of now, US Bitcoin ETFs collectively manage $115 billion in assets, underscoring the staying power of both retail and institutional investors despite the crypto market downturn.

Bitcoin ETF outflows persist

Since mid-February, Bitcoin ETFs have witnessed total outflows of nearly $5 billion.

On March 13 alone, outflows reached $135 million, according to Farside Investors.

However, BlackRock’s iShares Bitcoin Trust (IBIT) remains an exception, attracting net inflows of $45.7 million amid the broader sell-off.

Bitcoin price faces pressure 

Bitcoin’s decline continues as selling pressure intensifies due to macroeconomic concerns, including the Trump administration’s ongoing tariff battle.

While BTC briefly surged above $84,000 following the release of US CPI data on Wednesday, it failed to hold above key resistance levels.

At press time, Bitcoin is trading at $81,953, down 1.56% on the day, with daily trading volume dropping 22% to under $30 billion.

According to Coinglass data, 24-hour liquidations have spiked to $75 million, with $52 million in long positions being wiped out.

CryptoQuant CEO Ki Young Ju noted that Bitcoin demand appears “stuck” at current levels but emphasized that it is still “too early to call it a bear market.”

Long-term Bitcoin holders continue accumulating

Despite Bitcoin ETF outflows, on-chain data reveals that long-term holders are accumulating more BTC.

Crypto analyst Ali Martinez reported that these investors have added over 131,000 BTC to their wallets in the past month alone, signaling confidence in Bitcoin’s long-term trajectory.

With Bitcoin’s price volatility and ETF outflows persisting, the coming weeks could be crucial in determining whether investors’ diamond hands will hold firm or if selling pressure will intensify.



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Bitcoin Price Steadies—Is a Meaningful Bounce on the Horizon?

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Bitcoin price started a recovery wave above the $80,500 zone. BTC is now rising and might aim for a move above the $84,000 and $85,000 levels.

  • Bitcoin started a decent recovery wave above the $81,000 zone.
  • The price is trading above $81,500 and the 100 hourly Simple moving average.
  • There was a break below a short-term bullish trend line with support at $83,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it clears the $82,500 and $84,000 levels.

Bitcoin Price Eyes Steady Increase

Bitcoin price remained stable above the $78,000 level. BTC formed a base and recently started a recovery wave above the $80,500 resistance level.

The bulls pushed the price above the $82,000 resistance level. However, the bears were active near the $84,000 resistance zone. A high was formed at $84,200 and the price corrected some gains. There was a move below the $83,000 level.

The price dipped below the 50% Fib retracement level of the upward move from the $76,818 swing low to the $84,200 high. Besides, there was a break below a short-term bullish trend line with support at $83,000 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading above $81,200 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $82,450 level. The first key resistance is near the $84,000 level. The next key resistance could be $85,000.

Bitcoin Price
Source: BTCUSD on TradingView.com

A close above the $85,000 resistance might send the price further higher. In the stated case, the price could rise and test the $86,500 resistance level. Any more gains might send the price toward the $88,000 level or even $96,200.

Another Drop In BTC?

If Bitcoin fails to rise above the $82,450 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $80,500 level. The first major support is near the $79,600 level or the 61.8% Fib retracement level of the upward move from the $76,818 swing low to the $84,200 high.

The next support is now near the $78,500 zone. Any more losses might send the price toward the $77,000 support in the near term. The main support sits at $76,500.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $80,500, followed by $79,600.

Major Resistance Levels – $82,450 and $84,000.



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