Crypto Market Plummets Amid Trump’s Threats
The markets took a hard hit this Thursday. President Donald Trump threatened to impose new taxes on imports from Canada and the EU, warning that their potential collaboration could harm the US economy. Cryptocurrencies like Dogecoin (DOGE), Ethereum (ETH), and Ripple (XRP) plunged by over 5% during the early hours of the Asian session. Traders took profits following recent gains.
On Wednesday, Trump signed an order imposing a 25% tax on automobile imports. He also threatened further actions if the EU and Canada retaliated. This escalates trade tensions, especially as retaliatory tariffs are set to take effect on April 2.
Eyes on US PCE Data
Main cryptocurrencies recorded an average drop of 4.5%, with Dogecoin leading the fall at -7%. The only exception was Toncoin (TON), which surged by 5% in 24 hours. Bitcoin was trading at $85,925, down by 1.8% over the last 24 hours. Meanwhile, Ethereum dropped by 5.1% to $1,923. The total crypto market cap decreased by 2.35% to reach $2.79 trillion. Meanwhile, gold reached new highs, surpassing $3,109 in the morning, continuing its strong rise since March.
All eyes are now on the release of the Personal Consumption Expenditures (PCE) report in the US, scheduled later in the day, which could further influence the market.
Bitcoin Options Expiry Looming
Over $12.2 billion worth of Bitcoin options are set to expire soon, and market sentiment could be impacted by the imminent release of US PCE data. With ongoing trade tensions and evolving global monetary policies, Bitcoin may see a decrease in demand as a safe-haven asset, adding concerns to an already volatile market.
QCP Capital traders mentioned that Bitcoin’s price is moving sideways and there is little optimism in the market currently, evident by the decline in transaction interest. They believe any short-term rally will be limited, especially with the upcoming release of the PCE index data. Markets are waiting to see how President Trump will react in the ongoing trade conflict, adding uncertainty.
As the US economy faces more uncertainty due to trade tensions and soaring inflation, investors may turn away from Bitcoin and seek more stable assets to hedge against inflation. This shift could impact Bitcoin’s price and its status as a safe-haven investment.
