A new round of tariffs of the president of the United States, Donald Trump, and the lack of short -term catalysts is inciting the caution of market observers, who believe that the ethereum ether (ETH) can be particularly affected.
Trump said Sunday that he will present 25% tariffs on all imports of steel and aluminum in the United States, in addition to existing tariffs, with reciprocal tariffs later in the week applicable to all countries.
The rhetoric and the increase in inflation expectations could generate downward volatility with a key indicator that foresaw a movement above $ 100,000 for Bitcoin, when it quoted below $ 70,000, returning to Bearish on Sunday.
Crypto Majors remained little changed in the European afternoon on Monday, with US Futures Dow and S&P 500 0.46% ahead of the New York Open. Bitcoin, Ether, XRP, Solana’s Sol and Dogecoin (Doge) rose below 1% in the last 24 hours, while BNB of BNB of BNB lost 4.5% after a Sunday rally.
Tariffs introduce economic uncertainty to potentially commercial wars, which can lead to market volatility: such events tend to affect Bitcoin and the wider cryptographic market as investors tend to move away from risk assets to safer investments.
Some merchants say that the ether could be more affected as feeling for cryptography and preference for BTC.
A fall in ETH can also mean bad news for beta bets related such as Memeco Dogecoin (Doge) and tokens defi based on Ethereum, which tend to reflect the movements of the main asset.
“The emergence of BTC vs EveryThing EveryThing is the most obvious compared to ETH, which is to see the short record and fud with the second largest token that has dropped -23% ytd vs to +2.5% gain in BTC”, fan From Augustine, chief of Insights in Signalplus, he told Coindesk in a telegram message.
“At the risk of sounding like a broken record, but the lack of L1 catalysts and narrative leadership will probably continue to weigh on Ethereum in the predictable future,” Fan added.
“Ethereum has been hit particularly hard when ETH reversed his entire bomb at the end of November last year, unrolling any gain for the headlines,” Nick Ruck, director of LVRG Research, shared in a telegram message. Due to the expectations of an increase in inflation, investors bet on a single interest rate trimmed by the Federal Reserve this year, launching a gloomy perspective for risk assets, including cryptography. “
Meanwhile, Capital QCP merchants, based in Singapore, expect Flip-Flop cryptography markets in the coming weeks as Trump’s words continue to impact the markets.
“A feedback cycle is emerging: President Trump, highly sensitive to market reactions, faces a market that more and more calls his lantern. This could be able to be able to get it even more, adding another layer of volatility, ”said the firm in a Monday transmission message.
“The volatility of BTC now leans in favor of the positions until April, which reflects a lack of rising catalysts,” he ended.
