The macroeconomic landscape appears to be getting more complicated. Trump continues to assert his influence globally by imposing his tariff policies. Recently, he gave Russia a 50-day ultimatum, possibly shorter, and issued severe threats. The global economic system is undeniably undergoing a transformation. But what about cryptocurrencies?
Cryptocurrencies on July 16
As the global economic system aligns less with US interests, Trump has taken charge with a tough stance. By disciplining all trade partners with tariff threats, he aims to balance the increasing debt backed by printed dollars using America’s military and political dominance. While the US debt ceiling has been raised by 5 trillion dollars, this seems to be just a narrative. It’s likely that within a few years, we will witness annual increases ranging from 7 to 10 trillion dollars, reaching unmanageable debt levels.
By creating a narrative around manageable debt through tariffs, Trump seeks to distract the world. Since the tariffs began in April, we have seen a global minimum customs tax of 10%, with some countries experiencing rates of 20% or higher. Despite this, the Producer Price Index (PPI) data came in below expectations today, with BTC returning above 119,000 dollars. However, in the long run, tariffs will likely drive inflation higher, delaying any Federal Reserve rate cuts due to the effective customs tax rate nearing 20%.
Analysts’ Cryptocurrency Predictions
This marks a first since April. What’s happening for the first time? Daily trading volume on the Coinbase exchange reached levels last seen when the BTC price bottomed out at 74,000 dollars. Yesterday, for the first time, US investors showed intense interest in Bitcoin 
$78,323, with price resilience indicating a potential increase in US central demand, as there was no massive selling with increased volume.
Analyst Jelle believes the upward trend will continue as long as the 118,000-dollar support level holds. He identifies 120,000 dollars as resistance and expects momentum to build if one of these key areas is breached.
Analyst Nagato noted the TOTAL2 chart, which reflects the total value of cryptocurrencies excluding BTC, moving towards 1.6 trillion dollars.
A close above this region could signify the start of a major move for altcoins.
