Crypto prices are down today, driven by Fed uncertainty and Trump’s tariff policies. Bitcoin, Ethereum, and Solana hold key support levels, but traders remain cautious as global trade tensions and inflation risks loom.
The crypto market fell earlier today, dropping 4.2% in 24 hours, bringing the total market cap to just above $2.7 trillion. This price action has been consistent over recent trading days. Although Bitcoin, Ethereum, and Solana remain relatively stable, absorbing selling pressure and holding above key support levels, traders are cautious.
The market provides clear signals supporting this sentiment. It has been over a month since Bitcoin surpassed $90,000, and the likelihood of extending Q1 2025 losses is higher than prices breaking above all-time highs. The accumulation over the past few days may slow bearish momentum, but if Bitcoin falls below $74,500 and April lows, it could drag the crypto market to new 2025 lows in the coming weeks.
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This preview is largely tied to the Donald Trump administration’s stance on higher tariffs for countries imposing elevated rates on U.S. goods and the resulting impact on monetary policy.
As it is, the current situation leaves investors grappling with an uncertain economic outlook, compounded by mixed messages from the White House on international trade policy.
Despite assurances and modestly positive economic data, markets remain on edge as analysts navigate the implications of tariffs, a lower probability of a Fed rate cut, and rising inflation.
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The Balancing Act
Bitcoin and the broader crypto market will only find relief if favorable trade agreements are reached between the United States and key partners, including China, Canada, Europe, and Mexico. The aggressive trade policy oscillates between threats and reassurances and keeps markets in a wait-and-see mode.
After the President imposed sweeping reciprocal tariffs affecting over 180 nations, markets plummeted. Later, the White House announced a 90-day pause, boosting sentiment and supporting a recovery in crypto prices.
Although tariffs are currently set at 10% for most countries, except China, investors remain concerned about the long-term implications for the United States and the global supply chain.
In a recent briefing, White House Press Secretary Karoline Leavitt sought to alleviate these concerns, stating that the Trump administration is considering relief for U.S. farmers impacted by the trade war. She also noted that 15 countries actively negotiate with the United States to secure “strong trade deals.”
Meanwhile, National Economic Council Director Kevin Hassett said the administration is considering either a bundled announcement or a phased rollout of new trade agreements.
However, confusion persists. On Sunday, Trump posted on Truth Social that the previous exemption on electronic tariffs would be applied under a “different framework” at a later date, leaving markets uncertain.
Bitcoin and Crypto Market on Watch
The next few weeks will be critical for the crypto market, impacting activity on some of the hottest presales in April 2025. After the 90-day tariff pause expires, Bitcoin and crypto prices may become more volatile and potentially face downward pressure.
Atlanta Fed President Raphael Bostic recently provided a sobering assessment of the U.S. economy. He described the situation as shrouded in “really thick fog” due to tariffs, adding that the economy is in a “big pause.”
Despite room for a dovish monetary policy, the window for rate cuts is narrowing as tariffs increase inflation. Higher tariffs import elevated inflation, reducing the need for the central bank to ease monetary policy. The year-over-year Consumer Price Index (CPI) rose slightly to 2.4% in March 2025.
With disruptions in global trade markets, the U.S. economy could slow, potentially triggering a recession. This possibility persists despite Hassett’s assertion that there is “100% no chance” of a recession in 2025. He emphasized that businesses, including Apple and TSMC, are relocating operations to the United States to avoid high tariffs.
A high interest rate environment coupled with a struggling economy could pose challenges for crypto markets, which are increasingly sensitive to monetary policy shifts. Historically, low interest rate regimes have driven capital into Bitcoin, even boosting the valuation of some of the best Solana meme coins.
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Crypto Market Dips 4.2%: Bitcoin, Ethereum Hold Support Amid Trump Tariffs, Fed Uncertainty
- The crypto market is under pressure, reflecting ongoing volatility tied to U.S. trade policies and Fed signals
- Bitcoin price trading above $80,000 but has yet to break above $90,000 in the last month
- Higher tariffs could push inflation higher in the United States
- Will the Federal Reserve slash rates despite concerns of high inflation and slow economic growth?
The post Crypto Down Today After Fed Spooks Markets With Fiscal Uncertainty appeared first on 99Bitcoins.
