The crypto market is recovering from a recent dip, showing growth amid various economic developments.
Trump's Tariff Delay Sparks Optimism
Earlier, US President Donald Trump announced a 25% tariff on auto imports from Canada and Mexico, causing concerns in the global economy and crypto sector. However, a temporary solution was reached with a 30-day delay in implementing the tariffs. This move eased economic pressure and positively impacted the crypto market.
Stock Market Gains Fuel Crypto Rally
The US stock market rose by 1.05%, which has positively affected the crypto sector. MicroStrategy shares increased by 11.17%, while Coinbase Global saw a 3.63% rise. This momentum has contributed positively to the crypto market.
Weaker Dollar and Interest Rate Speculation
Over the last four days, the US Dollar index has fallen by 3.21%. A weaker dollar can signal concerns about the US economy's health and lead to higher import prices, potentially fueling inflation. There is a 52% probability of a Fed rate cut in June 2025. Lower interest rates can encourage investors to seek higher returns in riskier assets like cryptos.
The crypto market is showing strength amid key economic events. If current trends persist, we may see a continuation of the bullish trend.
