Bitcoin Holds Steady Ahead of Trump’s Tariff Announcement and Jobs Report
Bitcoin’s price remains steady as markets anticipate President Trump’s “Liberation Day” tariffs announcement. European stocks fell ahead of the address amid expectations of increased volatility in U.S. markets. Bitcoin’s correlation with equities is strong, leading to cautious moves from institutional investors. The upcoming jobs report may also impact the market, as analysts foresee potential policy reversals due to market pressures.
On Wednesday, Bitcoin exhibited a stable price as the cryptocurrency market awaited information regarding President Donald Trump’s anticipated tariffs. The White House has dubbed April 2 as “Liberation Day,” where the president will deliver an address at 4 p.m. Eastern Time during a Make America Wealthy Again event in the Rose Garden. There exists considerable uncertainty regarding which imported products will be impacted and which countries will bear the brunt of the tariffs.
In anticipation of Trump’s address, European stock indices traded lower, with Wall Street analysts predicting increased volatility in the S&P 500 as further details emerge. Such volatility could adversely affect Bitcoin, as downturns in the stock market often have a negative correlation with the cryptocurrency’s performance. As of the latest data, Bitcoin’s price had increased by 1.1% to nearly reach $85,000, whereas Ethereum experienced a slight decline of 0.2%, trading at $1,880.45, according to CoinGecko.
Research by Newhedge indicates a strong correlation between Bitcoin’s value and U.S. equities, currently at 0.74 on a scale of -1 to 1, suggesting that both markets tend to move in tandem. Valentin Fournier, a lead analyst at BRN, highlighted that fears of a potential global trade conflict have prompted institutional investors to reduce their risk exposure, leading to a $158 million withdrawal from Bitcoin-focused exchange-traded funds (ETFs) on Tuesday, as reported by SoSoValue.
Fournier pointed out that this capital rotation is accompanied by increased investments in gold, as investors seek to mitigate uncertainty linked to Trump’s upcoming announcements. Additionally, Bitcoin’s market dominance has risen to 61.8%, a significant increase from 52.3% a year prior, which signifies traders’ movement away from lesser-known altcoins, as per data from CoinMarketCap.
In examining the broader implications, the potential duration of Trump’s tariff strategies remains uncertain, along with the question of whether declining markets may compel the president to adjust his approach. On the horizon, the U.S. Bureau of Labor Statistics is set to disclose March’s employment figures on Friday morning. Although February’s job report exceeded expectations, it also reflected an increase in the unemployment rate to 3.9%.
Nigel Green, CEO of deVere Group, expressed the belief that Trump may be necessitated to reconsider his policy within the next 6 to 12 months, given its risks of disrupting global supply chains and inflating U.S. consumer prices. He remarked, “History teaches us that trade wars are easy to start but hard to win, and the early signs of strain are already visible across markets and boardrooms.” Green emphasized that a reversal of these policies is likely as “markets crave clarity, businesses need stability, and consumers demand relief.”
In conclusion, the Bitcoin market remains steady amidst uncertainties surrounding Trump’s impending tariff announcements, dubbed as “Liberation Day.” As both Bitcoin and U.S. equities show a tendency to move in the same direction, the upcoming jobs report could further influence market dynamics. Notably, institutional investors appear to be cautious, shifting their investments in light of potential trade conflicts. Analysts suggest that clarity and stability are essential for market confidence moving forward.
Original Source: decrypt.co
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