Why Crypto Market is Up: Will It Crash After Trump Tariff Speech?

Why Is the Crypto Market Up Today? Bullish or Bearish Rally on the Horizon?

The global cryptocurrency market is seeing a noticeable uptick today. According to CoinMarketCap, the market capitalization has increased to $2.72 trillion, marking a modest 0.49% rise in the last 24 hours. Despite a slight decrease in trading volume by 0.54%, dropping to $76.75 billion, investor sentiment remains positive. Bitcoin's dominance is also on the rise, currently standing at 61.80%, underscoring its central role in the ongoing rally.

What Is Driving the Surge in the Crypto Market?

Several factors appear to be fueling the current surge in cryptocurrency prices. First and foremost, a major economic announcement is adding fuel to the fire — U.S. President Donald Trump is set to unveil a new tariff policy at 4 PM (Washington time) today. According to reports, this policy could impose a 20% tariff on most imported goods. If this happens, the price of goods in the U.S. may rise, which could trigger inflation. In response to inflationary pressures, investors often turn to digital assets as a hedge against traditional market fluctuations.

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Analysts have pointed out that the uncertainty surrounding inflation and interest rates is pushing investors toward Bitcoin and other cryptocurrencies. Bitcoin itself has been performing well, reaching a new high of $85,000 — a 1% increase on the day, with a market capitalization of $1.68 trillion. Bitcoin's price is showing strong momentum and analysts suggest that if the cryptocurrency crosses critical resistance levels, a more significant rally could be in the works.

According to analyst Ali Martinez, Bitcoin needs to surpass the 200-day and 50-day moving averages, which are currently set at $86,200 and $88,300, respectively. If Bitcoin manages to break these levels, it could trigger a strong bullish rally. For now, Bitcoin is finding support around $80,400, and if it holds, it might continue to push upwards.

Another noteworthy factor influencing the market is the Fear and Greed Index, which currently stands at 44, reflecting a "Fear" sentiment. Just a week ago, this index was at 47, signaling a neutral market. Historically, a "Fear" sentiment can often represent a buying opportunity for investors looking to capitalize on a potential market rebound. The current fear in the market might prompt more users to enter the space, anticipating a breakout in the near future.

Will the Crypto Market Continue to Rally or Face a Setback?

Despite the current positive momentum, the crypto market remains fraught with uncertainty. One of the key sources of volatility is the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple. Recently, Ripple's CEO, Brad Garlinghouse, stated that the SEC was likely to drop its appeal, a move that could signal a significant victory for Ripple and its community. However, until the SEC makes an official announcement — which is expected on April 3 — the market remains on edge.

Beyond the Ripple case, the U.S. tariff announcement will play a crucial role in determining the direction of the market. If the tariff policy bolsters business and investor confidence, cryptocurrencies may continue to experience upward pressure. On the other hand, if the policy exacerbates inflation or economic instability, it could lead to a market downturn, particularly in digital assets that are sensitive to macroeconomic shifts.

Additionally, investors are closely watching upcoming events that could further shape the market. U.S. Federal Reserve Chairman Jerome Powell is scheduled to deliver a key speech on April 4, and the ADP Non-Farm Employment Change report, due on April 2, will provide insight into the broader economic landscape. These economic indicators could provide clarity on interest rate policies, which in turn influence the growth prospects of cryptocurrency projects and price predictions.

Conclusion

The surge in the cryptocurrency market today can largely be attributed to investor sentiment, optimism surrounding Trump's potential tariff move, and Bitcoin's strength. However, while the short-term outlook appears positive, it is crucial for investors to remain cautious. The cryptocurrency market is highly reactive to both political and economic news, and changes in sentiment can occur swiftly and dramatically.

In the coming days, the market will likely be influenced by a series of events, including the final decision in the Ripple case, the outcome of the U.S. tariff announcement, and upcoming economic data releases. These factors will have a significant impact on the direction of the market, and investors should be prepared for both potential upside and downside in the volatile world of cryptocurrency. Keep a close eye on developments as they unfold, and be ready for the unpredictable nature of the crypto market.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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