The political re-entry of Donald Trump has cryptocurrencies volatile, while he was keen on interacting and providing a level of regulatory oversight during his presidency. The damage done to the economy with the tariffs and other policies has greatly impacted the global economy and cryptocurrency market. When NAFTAs were first introduced, the said policies greatly impacted the laws surrounding international trades.
Black Monday for Trump commenced on April 7th when Trump decided to implement tariffs during this period. This caused a marketplace bloodbath for the period referred to as “Black Monday.” The bullish crypto markets witnessed a sell-off for the first time since post-elections. Trump severely impacted global trade with his tweet-based dictatorship.
The White House Crypto Summit: A Beacon of Hope?
In all the chaos the market has been going through so far, the White House Crypto Summit was nothing short of a silver lining. Having had prominent figures like Michael Saylor and Brian Armstrong in attendance, the summit represented the crypto community’s hope for further Trump Administration engagements and more precise fostering of the region’s policies. In a similar manner, the SEC’s regulatory approval policy for stablecoins, which involved dropping lawsuits and clarifying their position as regulations, bolstered a sense of confidence for crypto investors.
Conflicting Signals: Tariffs vs. Pro-Crypto Policy
For the most part, the attitude toward Trump’s policies was neither here nor there for the crypto market. On one hand, the administration’s willingness to engage was refreshing, but on the other, the tariff declaration was the primary catalyst for a significant market crash that saw the total capitalization of the crypto market fall. In addition to this, Trump’s idea of a U.S. Bitcoin Strategic Reserve vaguely proposed using lost Bitcoin instead of market purchases, leaving investors less than thrilled.
Market Resilience: The Difficulties Faced During the Bitcoin Era
Bitcoin has always demonstrated remarkable strength in the face of the market’s overall decline. Despite the unfavorable tariff policies, Bitcoin has managed to repeatedly rebound, staying above the former cycle’s all-time high of $60,000. It appears, even with widespread macroeconomic headwinds, the strength and resilience of Bitcoin’s fundamentals has not been compromised.
Ethereum Struggle: Altcoins Lag Behind
On the other hand, Ethereum and other altcoins or blue-chip cryptocurrencies have not been able to recover at all. Ethereum, for instance, is unable to surpass its previous cycle’s all-time high and has dipped as low as $1,400, the 2018 peak. This also largely emphasizes the varying degrees of resilience among different cryptocurrencies.
Market Uncertainty Persists: A Rollercoaster Ride for Investors
With investors still grappling with the consequences of Trump’s tariffs, the crypto market remains turbulent. The recent softening of tariff threats has provided investors with a breather, although there is still a long way to go before one can talk about full recovery. All the while, Bitcoin is considered one of the leading bellwethers of market sentiment and, therefore, must be closely observed.
Shifting Sands of Uncertainty, Mountains of Opportunity
Difficulties surrounding the global economy, coupled with the Trump administration’s policies, have placed the crypto market under the seven veils of uncertainty. Tariff threats are wreaking havoc across markets; however, the Trump administration’s engagement with the crypto industry and support for stablecoins provides a beacon of hope. There is potential for positive change, but the long tail in the subsequent months of the Trump policy storm will prove most interesting.
