Cryptocurrency markets can be on the right track to recover, because investor’s mood begins to stabilize after the universal tariff of the US President Donald Trump – which some analysts call the peak of recent market uncertainty.
Trump announced its mutual import tariffs on April 2, which sent trembling on global markets. According to Reuters, S&P 500 lost over $ 5 trillion, which is the largest decline, exceeding the disaster caused by Pandemia in March 2020.
Despite this, some analysts see a silver lining for tariff announcement.
“In my opinion, the tariffs are a representation of uncertainty on the markets,” said CointeLgraph Michaël van de poppe, founder of MN Consultancy. “The day of liberation is basically the peak of this period, the culmination of uncertainty. Now it is in the open. Everyone knows new opportunities.”
Van de Poppe added that he thinks that Trump uses tariffs as a strategic movement to stimulate domestic growth and reduce crops. “Tariffs are literally the only way to do it,” he said. “I would not be surprised if they were reversed in the next six to 12 months.”
Average tariff rate for goods and imports in the USA. Source: JPMorgan, Ayesha Tariq
President Trump’s plan imposes a 10% basic tariff on all US imports from April 5 and a higher “mutual tariff” to 54% in selected countries with larger trade deficits from April 9.
Related: Michael Saylor’s strategy buys DIP Bitcoin from the purchase of USD 1.9 billion
Import tariffs can make Fed easier
However, the end of uncertainty can bring re -investments to cryptographic markets, which led to recovery, said Van de Poppe:
“We will start to see the rotation towards cryptographic markets in the coming period, in which there is more peace and peace in the markets, where investors are starting to buy a inheritance and understand that some things have been underestimated.”
He noted that the economic impact of the tariff can ultimately lead the US federal reserve to lower interest rates and start a up-to-date round of quantitative relief (QE), monetary policy, which includes FED buying bonds to inject liquidity into the economy.
Arthur Hayes, co -founder of Bitmex and director of investment in Maelstrom, predicted that Bitcoin may raise to USD 250,000 if the Fed formally enters the QE cycle.
Related: Satoshi Nakamoto turns 50 years venerable when Bitcoin becomes an American reserve resource
Trump’s tariff uncertainty still burdens sentiments
On the other hand, the uncertainty related to the tariff can continue the pressure on the risk of risk for weeks, according to Noelle Acheson, the author of the cryptographic Macro Now newsletter.
“We can count on the fact that President Trump changed his mind several times in the first few weeks,” said Aacheson Cointelegraph. She added:
“With increased uncertainty in these markets, we can expect more risk, despite the fact that some short -term reflections can bring some relief.”
“In the case of BTC cryptocurrencies, it still works like short -term risk assets, while its analogue counterpart of gold breaks one of all time after another”, development that can affect the mood of cryptographic investors in a compact period, said Aacheson.
Meanwhile, an intelligence company of cryptocurrency Nansen estimated 70% likely that the market could be the lowest until June, depending on the evolution of the negotiations of tariffs.
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