Recent changes in U.S. tariffs on Chinese goods continue to influence global markets, while Bitcoin remains above $85,000. Optimism in stock and cryptocurrency markets is growing amid shifts in tax policy and declining U.S. Treasury yields.
Impact of U.S.-China Tensions on the Cryptocurrency Market
President Donald Trump suspended tariffs of up to 145% for 90 days, providing a temporary boost to markets. Notably, temporary exemptions for smartphones, laptops, and storage devices led to a surge in both technology stocks and cryptocurrencies. Bitcoin's price surged to $85,810, marking a 12.9% recovery from a low of $75,000 seen on April 8. However, tensions persist as Trump announced plans to implement tariffs on semiconductors and electronic supply chains, complicating long-term planning for investors.
Positive On-Chain Data
Bitcoin's rise is not only supported by macro developments but also by improvements in on-chain data. The increase in the 'Realized Profit/Loss' (NRPL) ratio indicates a healthy foundation for market growth. Additionally, the decline in Bitcoin supply on exchanges suggests that investors prefer to hold rather than sell. Large wallet addresses holding ten or more BTC have reached an all-time high of 16.36 million BTC, while individual investors generally lean towards selling. For example, under the leadership of Michael Saylor, MicroStrategy recently purchased $285 million worth of Bitcoin, reaffirming confidence in the cryptocurrency.
Economic Uncertainty and Market Psychology
Despite short-term gains, global economic uncertainty fosters cautious optimism among investors. A CBS News survey published on April 13 reveals that 59% of Americans believe the economy is worsening, indicating a sharp decline in support for Trump’s economic policies. Cryptocurrency investors appear slightly more optimistic than traditional market participants, yet historical data demonstrates a strong correlation between cryptocurrencies and stocks.
In conclusion, Bitcoin remains a focal point amid evolving tariffs and economic uncertainty, with investor demand and sentiment likely to profoundly influence its trajectory.
