Bitcoin stabilises above $85k ahead of Liberation Day, EOS bucks bearish altcoin market
0
0
After a bit of early-day volatility, Bitcoin settled above $85,000 as markets geared up for President Donald Trump’s Liberation Day.
Crypto markets were mostly steady, with the total market cap at $2.837 trillion, off by 0.83%.
The Fear and Greed Index saw a decent bump, rising to 44, but remained in Fear territory.
Altcoins followed Bitcoin’s lead, and most tokens posted little to no gains.
Why are crypto markets down today?
Traders are jittery ahead of what President Donald Trump is calling “Liberation Day,” marked by a wave of new tariffs aimed at countries like China, Canada, and Mexico.
The proposed 25% tariff on auto imports, plus broader duties on foreign goods, has investors worried we’re heading into another inflation spike, and that has typically acted as a bearish catalyst for risk-on assets like Bitcoin.
While the tariffs are meant to cut the US trade deficit and boost homegrown manufacturing, traders are concerned that they could end up triggering a risk-off mood in global markets like crypto.
Back in early March, when Trump hit Canada, Mexico, and China with tariffs, Bitcoin tumbled hard, from $105K to $92K overnight.
The community is concerned that history could repeat itself.
Higher import costs mean pricier goods for American consumers, which fuels inflation.
That typically drives investors toward traditional safe havens like gold, which hit a record high of $3,150 per ounce earlier today, or US Treasurys, instead of Bitcoin, which still trades more like tech stocks than digital gold.
And with the Fed in no rush to cut interest rates, the next move likely won’t come before June, there’s not much in terms of macro fuel to lift crypto prices right now.
CME’s FedWatch Tool puts the odds of no rate cut at the May 7 meeting at 83.5%, which doesn’t exactly inspire confidence.
Add all that up, and you’ve got a market that’s nervous, cautious, and not ready to go risk-on again.
For now, Bitcoin holding above $85K is a small win, but it risks a move in either direction, according to a number of analysts on X.
Will Bitcoin go up?
According to trading firm QCP Capital, today’s tariff announcement is just the beginning of an extended period of bearish momentum.
In a note to investors, QCP warned that retaliation from nations like China and Mexico could escalate tensions fast.
“The US seems increasingly intent on isolating itself in pursuit of more favorable trading terms,” they said, adding that the countries on the receiving end are “not likely to concede.”
QCP analysts expect all risk assets to “remain under pressure,” for the time being.
However, some believe a recession could actually turn out bullish for Bitcoin and other risk assets.
If growth slows sharply, the Fed may be forced to pivot, slashing interest rates and possibly restarting quantitative easing to stimulate the economy.
That kind of liquidity boost has historically favoured assets like crypto, which tend to thrive when borrowing is cheap and markets are flush with cash.
A recession could come into play if the tariff-driven inflation squeezes consumers while business investment stalls, dragging down GDP.
If that’s paired with tighter credit and weak global demand, the Fed may have no choice but to reverse course.
In terms of technical analysis, Bitcoin was “one Daily Candle Close above” the downtrend line from setting up for a potential breakout, according to Rekt Capital.
Source: RektCapital on X
According to the analyst, if bulls manage to push a daily close above the descending blue line and hold that level on a retest, we could see a shift in momentum toward a new technical uptrend.
Others like Captain Faibik also added to the bullish outlook.
When writing, Bitcoin was slowly climbing toward $87K, but for the move to hold, it needs to stay above $84K, according to analyst AlphaBTC.
A break below that support level could trigger a deeper correction, with the first key level to watch being the March 14 low of around $79,900.
Nevertheless, there’s a strong chance the market, along with Bitcoin, could drop once Trump officially announces the tariffs, just like it has during similar announcements in recent months.
Altcoins stay still
Over the past day, the altcoin market rose 5% to $1.15 trillion, with the Altcoin Season Index showing a reading of 15.
Despite this, some major altcoins such as Ethereum (ETH), XRP (XRP), and BNB (BNB) were slightly down 1-2%, while others like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) hardly held any gains.
Among the top 99 altcoins by market cap, EOS (EOS) was the only token to deviate from the market trend to post double-digit gains, while Raydium (RAY) and Ondo (ONDO) saw only minor gains. See below.
Source: CoinMarketCap
EOS continued to benefit from the hype around its rebranding to Vaulta as it shifted its focus to blockchain-based banking.
The EOS token will transition to Vaulta, with a new ticker expected later this month.
Adding to this, the project today unveiled four core pillars of Vaulta’s Web3 banking ecosystem: wealth management, consumer payments, portfolio investment, and insurance.
These will be powered by key partners like CEFFU, SPIRIT Blockchain, and Blockchain Insurance Inc., each bringing real-world use cases to the network.
As for RAY and ONDO, their gains appeared to be driven by market momentum, with no clear catalyst identified at press time.
The post Bitcoin stabilises above $85k ahead of Liberation Day, EOS bucks bearish altcoin market appeared first on Invezz
0
0
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio you’re using to start.
0
0
0
0