The cryptocurrency market has faced a sharp downturn dropping by 6% to around $2.62 trillion before regaining some momentum.
This slump comes in the wake of new global tariffs announced by the U.S. administration, which have sparked fears of economic disruption and heightened investor caution.
The tariffs, labeled “Liberation Day” by the U.S. government, are aimed at various sectors, including imports from China and Europe. Analysts warn that the move could worsen trade tensions and create challenges for blockchain developers, miners, and liquidity providers. This uncertainty has driven a risk-off mood among investors, with many pulling back from volatile assets like cryptocurrencies.
Despite the gloomy outlook, some industry figures remain positive. Zach Burks, CEO of NFT platform Mintology, believes that crypto’s future remains bright, predicting a significant Bitcoin surge as institutions seek alternatives amid growing economic instability. On the other hand, Mateusz Kara from Ari10 downplayed the panic, noting that markets were more worried about uncertainty than the tariffs themselves.
In response to the financial turbulence, many investors are pivoting towards safer assets, such as U.S. bonds and the dollar. However, some experts, like BitMEX founder Arthur Hayes, caution that limiting dollar issuance could strain U.S. Treasury bond purchases, possibly forcing the Federal Reserve to intervene as a liquidity provider. Hayes speculates that easing measures might push Bitcoin to $250,000 this year.
Meanwhile, UBS analysts foresee potential interest rate cuts from the Federal Reserve by up to 100 basis points before the year ends. Such moves could boost liquidity, benefiting riskier assets like Bitcoin and tech stocks. As markets digest the impact of the new tariffs, the balance between short-term caution and long-term optimism continues to shape investment strategies.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-poised-for-long-term-surge-despite-market-crash-says-mintology-ceo/