Bitcoin has seen substantial gains, nearing $85,000, following Donald Trump’s tariff pause impacting imports from over 70 countries. The tariff pause encouraged positive market sentiment across stocks and cryptocurrencies. However, apprehensions linger regarding potential policy reversals by Trump, which could trigger severe market corrections. Notably, Ray Dalio warns that Trump’s tariff strategies could destabilise the global monetary system, highlighting substantial economic risks ahead.
The cryptocurrency market experienced significant momentum following Donald Trump’s announcement of a 90-day tariff pause affecting imports from over 70 nations. This announcement has injected relief amongst investors, resulting in Bitcoin approaching the $85,000 mark. Other cryptocurrencies such as Ethereum, Solana, Flare, and meme coins like Pepe also experienced substantial price increases.
The stock markets reacted positively as well, with the Nasdaq 100 index gaining over 310 points, bolstered by increases in major technology stocks including Apple, Microsoft, NVIDIA, and AMD. Notably, the decision to exclude smartphones and semiconductors from the tariffs is crucial, as the imposition of a 145% tax on Chinese electronics would drastically hike the prices of everyday products like iPhones for American consumers.
While Trump’s tariff suspension has bolstered market confidence, risks persist. His decision signals flexibility in negotiations with countries like Japan and South Korea, encouraging both tech stock rallies and digital asset increases, which imbues confidence in traders. However, Trump’s propensity for abrupt policy changes keeps market participants apprehensive, particularly within the volatile crypto landscape.
Should Trump decide to revoke the tariff pause and enforce stringent tariffs anew, it could instigate serious economic repercussions. Such an aggressive trade posture could stoke recession fears, leading to rapid declines in Bitcoin and other cryptocurrencies. Current technical analysis indicates Bitcoin remains below its 50-day moving average, potentially forecasting further losses should it breach the $76,495 support threshold established on March 11.
In contrast, Ray Dalio has voiced concerns regarding Trump’s tariff-centric economic strategy, suggesting it may precipitate implications worse than a recession. During an NBC appearance, the Bridgewater founder raised alarms over a potential crisis within the global monetary system, warning of conflict risks due to mishandled policies. With Bitcoin’s volatility around $85,000, Dalio’s dire prognosis adds further tension to an already precarious market situation.
