Bitcoin (BTC) $94,825 is finding buyers at $83,000, while altcoins continue to face declines. The leading cryptocurrency is under discussion regarding potential delayed downturns or isolation from tariffs. Two senior executives believe that Bitcoin’s strong position may signal the start of a new era.
Tariffs and Bitcoin (BTC)
During the announcement of tariffs, BTC experienced a quick surge. However, significant country-specific taxes were introduced alongside a 10% additional tax, causing BTC to revert to a downward trend. Now, BTC has managed to regain its position above $83,000, maintaining support at $81,200, which is encouraging given the lack of a feared drop.
Despite periodic downturns since the pandemic, Bitcoin is at a significant crossroads, notably showing a weakening correlation with the growing Nasdaq 100. Following the introduction of new trade tariffs, the market saw losses exceeding 10%, yet BTC remained stable. This suggests an encouraging narrative that Bitcoin may be decoupling from traditional financial systems.
Augustine Fan, partner and CFO of SignalPlus, remarked, “Trump’s move has led to a reassessment of Bitcoin’s long-term value in investment portfolios.”
Although it appears to be diverging from tariff and policy risks, Bitcoin has priced in every significant global development. Discussions around tariffs had previously caused declines, but Bitcoin remained unresponsive when the events unfolded. Perhaps we are witnessing a scenario where extreme pricing has momentarily balanced out rather than true separation.
Delayed Pricing Possibilities
We have also observed some major events in cryptocurrencies being priced in with delay. The critical aspect will be whether Bitcoin can close above the pivotal $81,200 level on Monday. If there is no significant drop following the tariffs’ implementation, hopes for a real upswing may increase.
In a scenario without delayed pricing, if expectations for interest rate cuts remain strong, it could lay the groundwork for further increases. The past three years have seen prolonged periods of stagnation and dullness. Now, we are facing potential volatility, which historically may favor bulls at some point.