Trump Tariff News Leaves BTC Stable; DOGE, SOL, ADA See Bounce
Recent developments in the U.S. trade landscape have caused some interesting movements in the cryptocurrency market. Bitcoin (BTC) has managed to maintain stability despite news surrounding tariffs and legal rulings. At the time of reporting, Bitcoin was trading around $68,140.67, holding its ground near the $68,000 mark.
U.S. Supreme Court Ruling on Tariffs
A significant ruling from the U.S. Supreme Court declared former President Donald Trump’s global tariff program illegal. However, the court did not address the implications for funds already collected under these tariffs. This ruling does not seem to end Trump’s trade policies entirely, as other legal and executive options remain available.
New Tariff Announcement
In response to the ruling, President Trump announced a new 10% global tariff, expected to take effect in three days. This tariff, which falls under Section 122, will be implemented alongside existing tariffs. Despite the announcement, investor sentiment towards risk assets, particularly cryptocurrencies, remained relatively positive.
Market Reactions
The cryptocurrency market experienced a modest upturn. The CoinDesk 20 Index increased by 2.5% over a 24-hour period. Several altcoins showed significant gains, including:
- Dogecoin (DOGE): $0.1002
- Cardano (ADA): $0.2827
- Solana (SOL): 3% to 4% increase
In contrast, Bitcoin miners associated with AI infrastructure saw declines, with companies such as Riot Platforms (RIOT) and Cipher Mining (CIFR) decreasing by 3% to 6%.
Broader Financial Market Trends
The S&P 500 and Nasdaq 100 also reported gains, climbing by 0.9% and 0.7%, respectively. Moreover, stocks linked to the cryptocurrency ecosystem, like Coinbase (COIN) and Circle (CRCL), saw increases exceeding 2%.
Outlook and Future Considerations
Market analysts remain cautious about future price movements. Paul Howard, a director at trading firm Wincent, noted that while the recent tariff news triggered a small rally in risk assets, the overall conviction in sustained price increases is lacking. Current trading volumes are low, indicating a range-bound trend for cryptocurrencies could persist.
Analysts are also monitoring potential macro risks, such as the possibility of military action against Iran, which could further impact market stability in coming days.
