On April 2, 2025, Grayscale's Research Director Zach Pandl discussed the possible effects of tariffs on the cryptocurrency market. He suggests that the market may have adjusted to tariff impacts, indicating a potential recovery following forthcoming announcements.
Grayscale's Expert Assessment
According to Grayscale's Zach Pandl, the impact of tariffs on the crypto market may have stabilized this year. He estimates a 2% reduction in economic growth due to earlier tariffs. Pandl noted that lower policy uncertainty may lead to decreased market volatility if current trends persist. CITE_W_A: "If the tariff policy announced on Wednesday is both tough and phased and focuses on the 15 countries they seem to be targeting, I expect the market to rebound from the news. Once we get through this announcement period, the cryptocurrency market may refocus on fundamentals, which are very positive."
Market Analysis and Bitcoin Trends
According to CoinMarketCap, Bitcoin's current price stands at $84,804.40 with a market cap of $1,682,961,591,482.31. Despite a 2.29% increase in 24 hours, Bitcoin remains 17.42% below its peak price over the past 60 days. Pandl noted, "Higher policy uncertainty has led investors to reduce risk across the board." He anticipates a market rebound should the announcements align with predictions, reinstating a focus on crypto's intrinsic value.
Historical Adjustments and Investment Strategies
Did you know? Previous tariff implementations affected over $1.8 trillion in trade, initially creating global uncertainty but eventually leading to adjustments within financial markets. Coincu's research suggests targeted tariff announcements could mitigate uncertainty effects on financial markets. Historical analysis indicates market adaptations can shift focus back to fundamentals, aiding stability.
Pending announcements on April 2 could realign market focus towards crypto fundamentals, aiding recovery. The tariffs' phased approach targets 15 countries. These adjustments are noted as potentially bolstering investor confidence.
