- Trump suspends tariff hikes for 90 days.
- Market expectations shift towards June Fed rate cuts.
- Bitcoin’s value shows volatility amid trade policy changes.
Former U.S. President Donald Trump announced the suspension of planned tariff hikes on Wednesday, April 10th for a 90-day period.
The delay in tariffs influences financial markets, shifting expectations for potential rate cuts from the Federal Reserve, now likely to happen in June.
Trump Pauses Tariff Hikes, Markets Anticipate June Fed Rate Cuts
President Trump’s pause on the proposed tariff increases affects international trade negotiations. The initial plan sought up to a 104% increase but is postponed due to ongoing discussions with over 75 countries. Trump’s focus on protectionism aimed to reduce trade deficits and reinforce U.S. industries.
The suspension’s immediate effects include adjustments in trader forecasts. Immediate drops in expectations of a Federal Reserve rate cut for May have moved predictions to June. Additionally, the suspension stabilizes markets, with the S&P 500 jumping over 7%.
Reactions from analysts and entities reflect differing sentiments. Analysts like those from Standard Chartered believe reduced tariff risks may lower Bitcoin’s appeal as a safe haven briefly. Trump’s focus on long-term trade deals is expected to influence markets further.
Cryptos React to Tariff Changes Amid Volatile Market Movements
Did you know? The U.S. has historically used tariffs as a tool to protect domestic industries and influence trade negotiations.
Bitcoin (BTC), priced at $83,003.02, represents a significant portion of the market with a cap of $1.65 trillion according to CoinMarketCap. Despite a 24-hour trading volume increase of 64.12%, Bitcoin’s price fluctuated, experiencing a 7.74% 24-hour hike but a 9.92% decline over 90 days.
Experts from Coincu foresee the suspension as a pivotal moment with potential repercussions on economic and trade policies. Data suggests that if the Fed delays cuts, cryptocurrencies might face further volatility. The intersection of such geopolitical shifts and financial regulations continues to drive market speculation.
Source: https://coincu.com/331243-trump-suspends-tariff-hikes-favorable-market-shift/