Will Trump Undo 90D Tariff Pause, triggering Stock and Crypto Market Crash?

Cryptocurrency prices have bounced back in the past few days, helped by Donald Trump’s decision to pause tariffs on most countries. Bitcoin price soared to near $85,000, while top coins like Flare, Fartcoin, Ethereum, and Pepe have risen by double digits. This crypto price prediction explores why Trump may undo his 90-day tariff pause, leading to a retreat.

Stock and Cryptocurrency Price Rallied After Trump Paused His Tariffs

The stock and crypto market rebounded last week after Trump decided to put a 90-day pause on tariffs from over 70 countries. That action raised confidence that he was flexible and willing to negotiate with cooperating countries like Japan and South Korea.

The administration then announced that it would exempt tariffs on popular products like smartphones and semiconductors. The reason is that a 145% tariff on Chinese-made iPhones would have made them unaffordable to Americans. It would also have made it easier for people to compare prices before and after his tariffs. 

That decision has helped to lift most technology stocks, with the Nasdaq 100 index jumping by over 310 points. Apple shares jumped by 3.8%, while Microsoft soared by over 1.5%. Other tech stocks like NVIDIA and AMD jumped. 

A sustained rally of technology stocks would be a good thing for the crypto market since they are correlated. This explains why Bitcoin and other crypto prices like Fartcoin and Solana have rebounded in the past few days. 

Crypto Market Would Crash if Trump Ended His 90D Pause

The risk for the crypto price is that Trump is known for changing his mind frequently, especially when triggered by a Fox News story. 

For example, he changed his mind several times last week when he kept increasing tariffs on Chinese goods, ultimately getting to 145%. He then changed his mind by excluding smartphones and other electronics from his tariff list.

Therefore, he might feel bad now that China has not responded to his tariffs on electronics by lowering its own. Such a move would lead to a strong crypto price crash as recession risks rise.

Bitcoin Price Technical Analysis

The recent Bitcoin price action signals what to expect from another crypto price if he ends the 90-day pause. The daily chart shows that the coin has remained below the 50-day moving average, a sign that bearish pressure remains. 

This chart also shows that the coin is not moving in a defined trend. Therefore, a bearish breakdown to the support at $76,495, its lowest point on March 11 cannot be ruled out. A further drop below that level will signal more declines to $70,000. It would also trigger a deeper sell-off among other players in the crypto market.

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crispus

Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.