Bitcoin Surges Above $98K Amid Tariff Changes and Anticipation of Fed Testimony
Bitcoin has climbed above $98,000, influenced by recent tariff increases from former President Donald Trump and pending remarks from Federal Reserve Chair Jerome Powell. Significant gains were observed in various altcoins, alongside a substantial trading volume in stablecoins, with Bitcoin’s market cap at $1.946 trillion. Experts express cautious optimism, highlighting critical support levels essential for maintaining positive momentum.
On Monday, Bitcoin experienced a notable surge, exceeding $98,000. This increase coincides with former President Donald Trump’s recent tariff announcements, where he raised steel and aluminum tariffs to 25% and implemented a 10% tariff on Chinese imports. Federal Reserve Chair Jerome Powell’s testimony on monetary policy before the Senate is also anticipated to influence market sentiment regarding inflation and economic measures.
Bitcoin’s upward momentum is crucial as it aims to reach the $100,000 milestone. Alankar Saxena, Co-founder and CTO of Mudrex, remarked, “Trading near $98,000, Bitcoin is steadily building momentum to reclaim the $100k mark.” He highlighted the importance of forthcoming CPI figures and emphasized that Bitcoin must maintain a support level above $96,600 to sustain its upward trajectory.
In spite of market volatility, there has been a rebound in the cryptocurrency market, with significant gains across several altcoins. Shivam Thakral, CEO of BuyUcoin, noted the influence of Trump’s tariff plans in creating investor hesitance while recognizing that regulatory clarity and increasing adoption hold the potential for future growth. Notably, the rising altcoins included XRP (3.9%), Solana (1%), BNB (5%), Dogecoin (5.4%), Cardano (13.5%), and Sui (10.7%).
Stablecoins represented a substantial portion of the market, with trading volumes of $89.29 billion, accounting for nearly 93% of the total 24-hour crypto market volume, as reported by CoinMarketCap. Bitcoin’s market capitalization reached $1.946 trillion, while its market dominance stood at approximately 60.27%, with 24-hour trading volume increasing by 8.8% to $35.96 billion.
According to Sathvik Vishwanath, Co-Founder & CEO of Unocoin, Bitcoin is currently testing a key support area around $95,000, aligning with its 100-day moving average, a level that historically triggers bullish trends. Although Bitcoin is within a consolidation range of $90,000 to $108,000, there are indications of a bullish continuation possible if it surpasses the $100,000 barrier. Observations of significant outflows from exchanges suggest accumulation by large holders, indicating potential upward movement as supply on exchanges diminishes.
In summary, Bitcoin’s price surpassed $98,000 amidst economic policy developments, specifically tariffs initiated by Donald Trump. Experts emphasize the significance of upcoming economic data and regulatory changes, which could influence market trends. The optimism surrounding the cryptocurrency market is reflected in the performance of Bitcoin and other altcoins, with strong support levels being vital for sustaining upward momentum.
Original Source: m.economictimes.com
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