Donald Trump’s decision to raise tariffs may have turned the market feeling linked to its pro-Crypto promises, causing a strong fall in Bitcoin (BTC) and specialties in the last 24 hours.
Merchants believe that Monday’s Bloodbath could be a purchase opportunity for several reasons, derived from the eventual growth and demand of stable backed by dollars.
“An bullish shot is for Stablecoins,” said Peter Chung, head of Presto Research, Coindesk in a Telegram message.
“The Secretary of the Treasury, Scott Besent, has recently pointed out that Trump prefers rates on sanctions as a diplomatic tool, since the latter moves away the countries of the dollar, weakening US financial hegemony. If that is the case, Trump would probably prioritize the Stablecoin bill in Congress, as it would improve the functionality of the dollar, reinforcing his global domain, “Chung said.
Vincent Liu, Investment Director of Kronos Research, reflected the feeling.
“With continuous concerns about rates scales and monetary volatility, illustrated by the decrease in the Canadian dollar against the USD since the tariffs were introduced, the snapshots linked to an important fiduciary could see accelerated adoption,” Liu said.
“As a coverage against economic uncertainty, they rationalize global transactions, eliminate Forex’s conversion obstacles and provide a perfect entrance door to cryptography. In the long run, the increase in the adoption of Stablecoin could improve liquidity, attract institutional capital and boost regulatory clarity. This evolution can place Stablecoins as a cornerstone of the cryptographic economy, reinforcing market stability and feeding sustained growth, ”added Liu.
A $ 2.2 billion rinse of Rypto Futures since Sunday can also provide the basis for short -term respite. High settlements can often indicate an overloaded market and indicate the end of a price correction, which makes it favorable buy after a strong fall.
Price graph areas with high liquidation volumes can act as support or resistance levels where the price could be reversed due to the absence of greater sales pressure of liquidated positions.
However, if the market continues to decrease, those with short positions could see this as validation, potentially increasing their bets. On the contrary, opposite merchants can see great liquidation as a purchase opportunity, waiting for a price recovery once the impulse for sale decreases.
What happened?
Trump imposed a 25% tariff on the assets of Canada and Mexico and a 10% tariff on China imports during the weekend. The measure apparently began a commercial war: Canada responded with a 25% tariff on the assets of the United States worth $ 106 billion, and Mexico will be expected to implement similar measures.
Treasury yields to two years increased, while 10 -year performance decreased, indicating concerns about short -term inflation. Asian markets fell on Monday, gold prices fell, pink oil and the cryptographic market collapsed.
Trump is also watching tariffs on the imported goods from the European Union, which could come “very soon,” according to the BBC. The EU said it would act as a collective and “respond firmly” if tariffs enter, indicating retaliation taxes.
The central idea of tariffs is to make imports more expensive, thus promoting national production and reducing the dependence of foreign goods. This is part of a broader strategy to use commercial policy to take advantage of better terms for the United States in international commercial negotiations.
However, tariffs increase the cost of goods exported to the US, which can damage the economies of these countries by reducing the demand for their products. If a country imposes rates, others could respond with their own, which leads to a cycle of intensified commercial barriers.
Tariffs interrupt the established supply chains, which are often globalized. The increase in costs or blocking certain goods can lead to shortage or higher prices in other places, which causes more protectionist measures of the affected countries, which leads to a greater interruption in financial markets.
The lack of the next catalysts can mean that cryptographic markets are trapped in a period of calm, except for a strong and isolated catalyst that directly increases Bitcoin.
“The feeling has become negative with few hopes that things can change, except for a possible strategic bitcoin reserve and more regulatory support of the government,” said Nick Ruck, director of LVRG Research, Coindesk in a telegram message.
“Although the market conditions are very different, the tariffs of the previous Trump administration could be a showcase for rates ads, which were only short -term clashes for cryptographic prices, while the general bullish trend remained intact “Ruck added.
