Trump Tariffs Impact Crypto, US Bond Yields Stable

Bitcoin and Ethereum  ETH -4.14% fall as President Trump announces new tariffs impacting crypto markets. The tariffs target the EU, Japan, and more, causing short-term volatility. US bond yields stabilize after recent fluctuations.

Bitcoin and Ethereum’s recent decline highlights the impact of geopolitical actions on crypto markets, emphasizing volatility. Investors are cautious amid fears of recession and inflation risks.

The new tariffs announced by President Trump target at least 14 countries, causing immediate market reactions. Bitcoin fell over 2%, while Ethereum mirrored this drop, showing crypto’s sensitivity to political changes.

President Trump’s tariffs aim to recalibrate global trade. Vikram Subburaj, CEO of Giottus, noted negative short-term impacts on crypto, with Bitcoin at risk of dipping to $104,000.

“The Trump’s tariff announcement… will impact the crypto market negatively in the short term. Even as Bitcoin consolidates above $107,500, a retracement to $104,000 levels may flush out the bearish sentiment and set the stage for a strong rally later this month.” – Vikram Subburaj, CEO of Giottus

The crypto market reacted predictably, with Bitcoin and Ethereum showing declines amidst global economic uncertainty. In contrast, US bond yields have stabilized following a period of continuous rise.

Market participants noted the increased risk posed by these tariffs, with fund managers reducing exposure to volatile assets. Edul Patel of Mudrex mentioned a growth in Bitcoin futures open interest, indicating mixed market sentiment.

Some analysts predict that cryptocurrencies could rebound sharply once macroeconomic conditions stabilize. However, until then, cautious trading is expected. Historical trends suggest Bitcoin’s resilience in post-panic recoveries.