Despite the recent collapse in leverage due to Trump’s tariff threat to China, analysts maintain positive outlooks thanks to Powell’s “dovish” signal on the end of the Fed’s quantitative tightening.
Caution sets the tone in the cryptocurrency market, just like the previous day. Bitcoin (BTC) Shows Moderate Rally and is located around the US$112,000 on Wednesday, while Ethereum (ETH) registers an increase of 3.6% in the last 24 hours and aims to consolidate the barrier of US$4,100.
In the altcoin segment, increases predominate. Solana (SOL) climbs 4%, while Cardano (ADA), Dogecoin (DOGE) and Tron (TRX) They advance to a lesser extent. XRP (+2.4%) gains positions compared to Binance Coin (BNB), which rises 1%. The rest of the tokens operate with limited movements.
The ghost of tariffs
Market still processing impact of recent leverage collapse —the largest in the history of the crypto ecosystem— unleashed after the tariff threat of donald trump against China. Yesterday, the commercial representative of United States, Jamieson Greerwarned that the 100% rate increase to the Asian giant “depends” on the movements of Beijingalthough Trump tried to defuse the climate.
However, analysts maintain that the market maintains solid fundamentals and encouraging projections. Specialized firms such as glassnode and CryptoQuant They assure that, despite the sharp declines recorded, liquidity and structural demand remained firm.
While short-term momentum moderated, Large holders of crypto assets took advantage of the price correction to increase positions, while the supply of stablecoins continues to expand.
bitcoin
Powell encourages the market
In this framework, operators highlight that yesterday’s appearance by the president of the Federal Reserve (Fed), Jerome Powell, provided the support that the market needed.
In his last public intervention, Powell confirmed that monetary policy will continue to be guided by data, but also noted that the central bank is approaching the end of its policy cycle “quantitative adjustment”the process of reduction of bond holdings started in 2022.
The market interpreted these statements as a dovish twistcomparable to a hidden rate reduction. The logic is clear: reducing the Fed’s balance sheet means less liquidity in the system, which tightens financial conditions in a similar way to raising rates. That’s why, Powell’s words generated a positive impact on the crypto market.
Source: Ambito
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