Bitcoin Approaches $85K as Tariffs Loom; DOGE, XRP, and ADA Dominate Market
A challenging quarter ends with Bitcoin's performance reflecting an 11% dip, while traders prepare for upcoming tariffs.
Bitcoin Approaches $85K as Tariffs Loom; DOGE, XRP, and ADA Dominate Market
A challenging quarter ends with Bitcoin’s performance reflecting an 11% dip, while traders prepare for upcoming tariffs.
Key Highlights:
- Bitcoin holds steady above $81,000 as traders await the effect of U.S. tariffs and reciprocal agreements from Canada to the EU.
- Despite a general risk-averse market sentiment, Dogecoin (DOGE) and Cardano (ADA) have posted gains of over 2.5%, contrasting Bitcoin’s 11% loss for the quarter.
- Long-term Bitcoin holders and new large investors are maintaining their positions, contributing to price stability.
Bitcoin (BTC) is nearing $85,000 during European trading sessions as traders anticipate the effects of U.S. tariffs expected to commence Wednesday. Notably, Dogecoin (DOGE) and Cardano (ADA) rose by over 7%, leading slight gains in major cryptocurrencies, while Ether (ETH), XRP, Solana (SOL), and Binance Coin (BNB) increased nearly 5%.
Overall market capitalization fell by 3%, with CoinDesk 20 dropping by 3% in the last 24 hours, amidst a broader risk-off sentiment gripping the markets, as U.S. equities contracted — the S&P 500 faced a 3% decline last week, marking the most significant decrease since September 2023, alongside a surge to gold as a safe-haven asset.
The impending tariffs, coupled with a barrage of U.S. economic and labor reports from last month, cast uncertainty over crypto sentiment. Augustine Fan, head of insights at SignalPlus, underscored a lack of fresh market catalysts as the period closes, highlighting the quarter’s 11% downturn for Bitcoin and the S&P 500’s substantial loss.
Fan noted, “Positions data merely reflects market conditions, not a trading suggestion. The catalysts for a steady rally are elusive at present, though we anticipate a sharp bullish turn given the prevailing short positions.”
Long-term investors are showcasing resilience. Data from Glassnode reveals that holders with 3-6 month positions are indeed gaining profits and keeping trading at their lowest levels since June 2021, reflecting a behavior of confidence over panic selling.
Jupiter Zheng from HashKey Capital mentioned that they view tariff uncertainty and recent economic reports as short-term setbacks. “The dip reflects a risk-off sentiment,” Zheng stated in a message to CoinDesk. “However, we remain optimistic for the long term, anticipating that more institutions will adopt crypto as global regulators introduce new policies to facilitate adoption.”
