Bitcoin breaks $87,000, XRP and SOL rise as tariff fears ease
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Cryptocurrencies surged on Monday as investor sentiment improved, driven by a more measured stance from the White House on reciprocal tariffs and encouraging economic data from the U.S. market.
Bitcoin gained 3.29%, reaching $87,033, its highest level since March 7. Ethereum followed closely, increasing by 3.2% to surpass the significant $2,000 milestone, trading at $2,066. XRP climbed by 3%, reaching $2.46, while Solana notably jumped 5.6%, trading at $138. Reflecting broader market optimism, the GMCI 30 Index, tracking the top 30 cryptocurrencies, advanced by approximately 3%.
Investor confidence was notably buoyed by indications that President Trump's administration would implement a more targeted and less broad tariff approach starting April 2. This easing of tariff-related concerns offered a respite to markets, which have been recently affected by heightened volatility due to trade tensions linking cryptocurrencies closely with equity market sentiment.
Vincent Liu, Chief Investment Officer at Kronos Research, highlighted that crypto market gains were largely a response to both the White House's moderated tariff stance and the Federal Reserve's long-term inflation management approach.
The positive crypto market sentiment was further supported by strong U.S. economic indicators. Recent employment data showed only a marginal rise in unemployment claims, up 2,000 to a manageable 223,000, underscoring continued strength in the labor market. Additionally, inflation pressures appeared to ease, with February’s Consumer Price Index moderating to 2.8%.
Augustine Fan of SignalPlus noted that macroeconomic fears often exceed actual economic conditions, emphasizing the market's stronger-than-perceived fundamentals.
Despite these positive developments, analysts remain cautious. Rachael Lucas, Crypto Analyst at BTC Markets, warned that uncertainty surrounding tariffs could continue contributing to market volatility. Immediate market reactions to the tariffs, once implemented, could trigger short-term volatility, especially if the U.S. dollar appreciates due to heightened trade tensions.
However, Lucas also suggested that if tariffs are perceived as part of broader negotiation tactics, easing tensions could prompt a relief rally, further boosting crypto asset prices. Investors should thus closely monitor the scale, scope, and duration of the forthcoming tariffs to gauge potential market impacts accurately.
Bitcoin gained 3.29%, reaching $87,033, its highest level since March 7. Ethereum followed closely, increasing by 3.2% to surpass the significant $2,000 milestone, trading at $2,066. XRP climbed by 3%, reaching $2.46, while Solana notably jumped 5.6%, trading at $138. Reflecting broader market optimism, the GMCI 30 Index, tracking the top 30 cryptocurrencies, advanced by approximately 3%.
Investor confidence was notably buoyed by indications that President Trump's administration would implement a more targeted and less broad tariff approach starting April 2. This easing of tariff-related concerns offered a respite to markets, which have been recently affected by heightened volatility due to trade tensions linking cryptocurrencies closely with equity market sentiment.
Vincent Liu, Chief Investment Officer at Kronos Research, highlighted that crypto market gains were largely a response to both the White House's moderated tariff stance and the Federal Reserve's long-term inflation management approach.
The positive crypto market sentiment was further supported by strong U.S. economic indicators. Recent employment data showed only a marginal rise in unemployment claims, up 2,000 to a manageable 223,000, underscoring continued strength in the labor market. Additionally, inflation pressures appeared to ease, with February’s Consumer Price Index moderating to 2.8%.
Augustine Fan of SignalPlus noted that macroeconomic fears often exceed actual economic conditions, emphasizing the market's stronger-than-perceived fundamentals.
Despite these positive developments, analysts remain cautious. Rachael Lucas, Crypto Analyst at BTC Markets, warned that uncertainty surrounding tariffs could continue contributing to market volatility. Immediate market reactions to the tariffs, once implemented, could trigger short-term volatility, especially if the U.S. dollar appreciates due to heightened trade tensions.
However, Lucas also suggested that if tariffs are perceived as part of broader negotiation tactics, easing tensions could prompt a relief rally, further boosting crypto asset prices. Investors should thus closely monitor the scale, scope, and duration of the forthcoming tariffs to gauge potential market impacts accurately.