In the middle of the strong global risk aversion, cryptocurrencies remain in suspense due to new ads of Donald Trump and grows their link with the US variable income.
He cryptocurrency market It crosses a volatility period. Bitcoin (BTC) falls 0.09%, according to Binance and It remains around US $82,600 after having fallen from that level for much of the last day. Meanwhile, Ethereum (eth) rises 0.8% and operates below US $ 2,000, noting A decline of more than 16% last 24 hours.
The Altcoins show a weak rebound with rises of up to 13%by Stellar, Binance Coin (7.9%), Ripple (5.6%), followed by PI at 3.8%.
Less trust in risk assets
Bitcoin’s domain in the total capitalization of the crypto market reached 62.5%, the highest level since March 2021, According to TrainingView data. This indicator has increased from 55% to 62% since the market reached its maximum point of 3.6 billion dollars in December. GEnerly, an increase in this index reflects less confidence in investors in higher risk assets amid volatility.
As for macroeconomic factors, uncertainty remains high. The escalation of the commercial war between the United States and the rest of the world intensified after the implementation of 25% tariffs on the imports of steel and aluminum, which has already generated responses from Canada and the European Union. The commercial policy of the Donald Trump administration is feeding the tension in the markets.
“The great unknown is how far Trump will come with its policy of tariffs and government cuts,” said Stephen Innes, Spi Asset Management manager. “While it is exaggerated to think that it seeks to cause a recession, you cannot underestimate your determination to reformulate global trade,” he added.
On the other hand, The last inflation data in the US did not dissipate the doubts of the market. According to the Office of Labor Statistics, the February Consumer Price Index (CPI) fell to 2.8% at its general rate and 3.1% in its underlying rate, both better data than expected. However, analysts warn that this could be “calm before the storm.”
“Uncertainty persists, since the effects of recent tariffs on Chinese products, Canadians and Mexicans have not yet been fully reflected. The worst could be to come “they warn from TD Securities.
In this context, the Federal Reserve faces a dilemma. While the data could justify a reduction of rates, a premature cut could enliven inflation. The market estimates that the Fed could resume cuts in May or June, with a possible accumulated reduction of up to 100 basic points for October.
Source: Ambito
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