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:

- Advertisement -

Latest

James Wynn Raises Hyperliquid Bitcoin Long to $1.25B After PEPE Win

James Wynn increased his Bitcoin long position to $1.25 billion using 40x leverage on the Hyperliquid platform.He exited his $PEPE coin trade with a...

Trump Faces Scrutiny After Using Presidential Seal at Memecoin Event

Donald Trump spoke at a private event for investors in his $TRUMP memecoin, using the official presidential seal at his Virginia golf club.Federal law...

Polygon Co-Founder Mihailo Bjelic Steps Down, POL Drops 5%

Mihailo Bjelic, a co-founder of Polygon, has stepped down from the network. Bjelic announced his departure from the board of the Polygon Foundation and daily...

Three More Arrested in Varanasi’s ₹16.5 Crore Crypto Scam

Three people, including the suspected mastermind, were arrested in connection with a $2 million cryptocurrency scam in Varanasi.Police recovered five mobile phones, two laptops,...

Polygon Co-Founder Mihailo Bjelic Steps Down, Remains in Crypto

Mihailo Bjelic has stepped down from his board role at Polygon Foundation and will reduce involvement in day-to-day operations.Bjelic stated he will continue to...

Must Read

What Are Anonymous Debit Cards And How Do They Work?

You've heard about anonymous debit cards, but what are they really? Anonymous Debit Cards are cards that let you make purchases without revealing your...