The post Crypto Crash Ahead? Bitcoin Nears $85K After Trump’s Tariff Pause, But Risks Loom appeared first on Coinpedia Fintech News
The crypto market got a strong boost recently after Donald Trump announced a 90-day pause on tariffs for imports from over 70 countries. This move brought some relief to investors and sparked a solid comeback in both crypto and stock markets. Bitcoin jumped close to $85,000, and coins like Ethereum, Solana, Flare, and even meme coins like Pepe saw big gains.
Stock markets also reacted well. The Nasdaq 100 climbed more than 310 points, with major tech stocks like Apple, Microsoft, NVIDIA, and AMD all rising. The mood improved even more when the Trump administration decided not to include smartphones and semiconductors in the tariff list. That was a big deal, especially since a 145% tax on Chinese-made electronics would have made everyday items like iPhones way more expensive for American buyers.
Market Confidence Grows, but Risks Remain
Trump’s decision to pause tariffs was seen as a sign of flexibility, especially with countries like Japan and South Korea, which boosted hopes for stable negotiations. This helped tech stocks rally, and since crypto often moves with tech, digital assets saw strong gains, too, giving confidence to both short-term traders and long-term holders.
But the mood isn’t entirely calm. Trump has a history of quickly changing course, sometimes based on political shifts or media pressure. His sudden U-turns, like removing smartphones from his tariff list after initially targeting them, keep markets on edge, especially in the already-volatile crypto space.
Potential Impact if Trump Reverses the Pause
If Trump were to end the 90-day pause and resume strict tariffs, the ripple effect could be severe. A return to aggressive trade policies may trigger fresh fears of a recession. In such a scenario, Bitcoin and other cryptocurrencies could lose their recent gains quickly. Technical analysis shows that Bitcoin is still trading below its 50-day moving average, indicating that bearish pressure is still in play. If the price falls below the $76,495 support level from March 11, it could slide further to $70,000, dragging the broader market down with it.
Trump’s next move could play a major role in shaping the near-term direction of crypto and stocks, especially as global markets remain sensitive to trade and policy signals.
Ray Dalio Warns of Deep Economic Trouble Amid Trump’s Tariff Push
On the flip side, Ray Dalio has raised the alarm over Donald Trump’s tariff-heavy economic approach, warning that it could lead to something even worse than a recession. Speaking on NBC, the Bridgewater founder said the U.S. is facing a major breakdown in the global monetary system, with risks of international conflict if Trump’s policies are mishandled. Dalio, who predicted the 2008 crisis, believes the current situation is rare and extremely serious. As Bitcoin hovers around $85,000, market sentiment remains shaky. While exemptions for smartphones helped ease fears temporarily, Dalio’s warning adds fresh pressure to an already fragile market.