Cryptocurrency Market Sees Slight Gains Amid Trade Policy Uncertainty
Cryptocurrency markets made modest gains on Wednesday as investors sought clarity on U.S. President Donald Trump’s tariff policies, particularly with respect to the upcoming trade measures set to take effect on April 2. Bitcoin, the leading cryptocurrency, traded around $87,271, marking a 0.84% increase over the past 24 hours. Analysts are closely monitoring potential breakout scenarios for Bitcoin, particularly as April has historically been a positive month for the asset.
Market Reactions to Trade Policies
President Trump has recently signaled that not all tariffs would be enforced by the April 2 deadline, suggesting possible exemptions for certain countries. However, the uncertainty was compounded by his announcement of a 25% secondary tariff on nations importing oil or gas from Venezuela. This move has contributed to a climate of unease within global markets, including the cryptocurrency sector.
At 11:28 AM IST on Wednesday, the overall cryptocurrency market capitalization rose to approximately $2.86 trillion—a 0.93% upward shift. Alongside Bitcoin, Ethereum also experienced gains, climbing 2.3% to reach $2,047. Market Analysis and Trends
Market analysts have noted that Bitcoin continues to fluctuate within a narrow range of $87,000 to $88,500. Ethereum is similarly attempting to recover the $2,100 level. According to Edul Patel, CEO and Co-founder of Mudrex, recent on-chain data indicates a significant outflow of $424 million from Bitcoin exchanges over the past week, suggesting an accumulation trend among long-term investors.
"April has historically been a strong month for Bitcoin, with an average gain of 13%. However, for Bitcoin to reach $100,000, it must first break the key resistance level at $90,000, with current support at $85,400," Patel explained.
Sathvik Vishwanath, Co-founder and CEO of Unocoin, shared that Bitcoin has been testing a pivotal trend line resistance. He noted, "Momentum indicators suggest a potential breakout, which could propel Bitcoin toward $95,000 if bullish sentiment remains strong. Conversely, if it pulls back to $86,400, that could provide a buying opportunity as long as support holds during American trading hours."
Altcoin Performance
Significant movement was also observed in the altcoin market. Solana surged 2.2%, XRP increased by 1%, Cardano gained 2.3%, and Dogecoin saw a notable jump of 4.5%. Other altcoins such as Chainlink, Avalanche, Hedera, Shiba Inu, and Stellar also demonstrated increases ranging from 2% to 8.5%.
As Bitcoin’s market capitalization reached approximately $1.731 trillion, its dominance in the crypto market increased to 60.54%. However, trading volumes for Bitcoin fell by 13.22%, settling at $28.9 billion over the last 24 hours. Notably, stablecoin transactions accounted for an impressive 94.44% of total cryptocurrency trading activity, amounting to $71.52 billion, as reported by CoinMarketCap.
Conclusion
In summary, the cryptocurrency market is currently experiencing a slight uptick as investors navigate the complexities of U.S. trade policies and their potential impacts. Traders will be closely monitoring Bitcoin’s price movements and the broader market’s response to see how these factors play out in the coming weeks.
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(Disclaimer: The views and opinions expressed by market experts do not necessarily reflect those of Economic Times.)
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