Crypto Market Recovers as Trump Softens Tone on Tariffs, Risks Remain

Bitcoin Recovers 11% as Trump Softens Chinese Tariff Stance, Though Weekend Trading Remains Vulnerable

  • Crypto market sentiment improves following Trump’s softer stance on Chinese tariffs, with Bitcoin staging an 11% recovery in the past week.
  • Analysts warn that weekend trading remains vulnerable to sharp price movements due to thin liquidity, regardless of improved sentiment.
  • Market experts suggest that tariff-related fears may have been fully priced in, though upcoming negotiations could introduce additional volatility.

Cryptocurrency investor sentiment has rebounded significantly as global tariff concerns ease, with Bitcoin recovering nearly 11% over the past week. This market improvement follows US President Donald Trump‘s more moderate stance on Chinese import tariffs, where he indicated that levies on Chinese goods might “come down substantially.”

- Advertisement -

Despite this positive shift, analysts from Bitfinex exchange cautioned that improved sentiment doesn’t eliminate all risks, particularly during weekend trading sessions. “Sentiment improvements reduce fragility, but they do not eliminate structural risks like thin weekend liquidity,” Bitfinex analysts told Cointelegraph, noting that weekends historically remain susceptible to sharp price movements, especially when market depth is low.

This vulnerability was demonstrated earlier this month when Bitcoin fell below $75,000 on Sunday, April 6, despite initially withstanding the US stock market’s $3.5 trillion drop on April 4. That market decline followed US Federal Reserve Chair Jerome Powell’s warning that Trump’s tariffs could impact the economy and increase inflation.

Marcin Kazmierczak, co-founder and chief operating officer of RedStone blockchain oracle firm, reinforced this perspective, telling Cointelegraph: “The sentiment recovery provides some cushioning, but traders should remain cautious as weekend liquidity constraints can still amplify price movements regardless of the current market mood.”

Market May Have Fully Priced In Tariff Concerns

According to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen, cryptocurrency markets may have already incorporated the full extent of tariff-related worries. “It feels like we’ve maxed out on tariff-related fear,” she explained to Cointelegraph.

Barthere added that markets seemed to be waiting for even the slightest signal to resume positive momentum. “Whether the rally is sustainable depends on whether we can break through previous resistance levels, at least in isolation,” she noted, while cautioning that more volatility could emerge during upcoming negotiations.

- Advertisement -

Negotiations May Be Strategic Posturing

Nansen previously forecasted a 70% probability that crypto markets would bottom and begin recovering by June, though the timeline depends significantly on tariff negotiation outcomes.

Raoul Pal, founder and CEO of Global Macro Investor, suggested that the current tariff discussions might only be “posturing” by the United States to secure a trade agreement with China, which could be the “big prize” for Trump’s administration.

- Advertisement -

As markets continue to navigate these developments, analysts maintain that weekend trading periods will require particular attention due to their inherent liquidity challenges, regardless of the improving overall sentiment in the cryptocurrency space.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

Stay in the Loop

Get exclusive crypto insights, breaking news, and market analysis delivered straight to your inbox. No fluff, just facts.

    1 Email per day. Unsubscribe at any time.

    - Advertisement -

    Latest News

    Thailand Launches TouristDigiPay for Crypto-to-Baht Conversion

    Thailand is allowing foreign tourists to convert cryptocurrency to its local currency using a...

    The 2nd Edition of the CoinFerenceX Decentralized Web3 Summit: Builders, Investors, and Developers Meet Again to Shape The Web Space

    Singapore is the global blockchain hub, and it is hosting the upcoming CoinFerenceX web3...

    Bitcoin Slides Below $115K as Markets Await Powell’s Jackson Hole Speech

    Bitcoin dropped below $115,000 after setting a record high of more than $124,000 earlier...

    Dogecoin Plunges 4% to $0.22 as Liquidations Top $1B Amid Volatility

    Dogecoin declined by 4% overnight, falling from $0.23 to $0.22 amid heavy trading and...

    SEC Delays Trump’s Truth Social Bitcoin, Ethereum ETF Decision

    The U.S. Securities and Exchange Commission delayed its decision on the Truth Social Bitcoin...

    Must Read

    Top 5 Testing Tools For Blockchain Applications in 2022

    Blockchain apps have been adopted popularly by some prominent industries due to its being a decentralized-designed technology. Furthermore, these apps eliminate the risks that...