Tariff Concerns Drive Crypto Market Bearish Sentiment: Bitcoin Faces Price Fluctuations
Despite initial optimism fueled by analysts like Bitwise’s Ryan Rasmussen, who projected a bullish $200,000 Bitcoin target by year-end, new developments have seen the crypto community turn bearish due to macroeconomic concerns, particularly linked to Trump’s tariffs. Bitcoin, while initially resilient, experienced a 5.5% dip below $82,000 post-tariff announcements, and traders now see $80,000 as vital support, with a potential bearish target of $40,000. While some still hold a bullish outlook, targeting $100,000 within months, market trust remains shaken with tariffs perceived as damaging even if they alleviate before the April 9 deadline. Traders are adopting defensive strategies like selling call options and shorting on rebounds, alongside using calendar spread strategies to exploit potential oversold bounces. Gold, traded through PAXG, is favored as a hedge against Bitcoin’s volatility amidst these uncertainties.
Bearish
The prevailing sentiment in the crypto market is bearish, driven by macroeconomic concerns related to Trump’s tariffs. Analysts initially had optimistic projections for Bitcoin, but the recent downturn, marked by a dip below $82,000, has shifted trader sentiment. Current market strategies involve defensive maneuvers like short selling and options trading, aiming to capitalize on the potential volatility and bearish price targets near $40,000. The news has notably shaken trust, making traders wary of Bitcoin’s sustainability as tariffs remain a looming threat. While some long-term optimism persists, the immediate market reaction indicates a bearish trend.