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Highlights
- The crypto market is at risk of another crash with Donald Trump insisting on tariffs.
- The US president affirmed that tariffs will soon start kicking in.
- He called on market participants to be patient during this period.
US President Donald Trump has again shown that he intends to move forward with his plan to impose reciprocal tariffs on several countries despite the 90-day pause. This provides a bearish outlook for the crypto market, which has already declined following his statement.
Crypto Market In Focus As Donald Trump Insists On Tariffs
The crypto market is again in focus as Donald Trump maintains his stance on tariffs. In a Truth Social post, the US president stated that tariffs will soon start kicking in while asserting that the country will boom as a result of this.
He suggested that the market could witness a downturn during this period, but remarked that it has nothing to do with tariffs. Instead, Trump blamed any potential market downturn on Joe Biden’s administration. Meanwhile, the president assured that when the market booms, it will be like no other.
Despite the president’s assurance, this development is bearish for the crypto market and puts the Bitcoin price and altcoins at risk of another crash. It is worth mentioning that these crypto assets had witnessed a massive crash when Trump announced reciprocal tariffs earlier this month.
They rebounded with Bitcoin breaking past $90,000 following the US president’s decision to pause these tariffs for 90 days. However, they could again lose these gains if the US goes ahead with these taxes on exports from other countries.
The crypto market is already suffering bearish pressure, with the Fed unlikely to cut interest rates at the May FOMC meeting. Market data shows there is an over 90% chance that the interest rates will remain unchanged following the meeting.
However, a positive for the market is that traders predict that there will be four Fed rate cuts this year, in June, July, September, and December. Bank of America has also predicted that there will be four Fed rate cuts this year, although they predicted that the first will come in May.
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