
Chubby Idol ☯️
@chubbyidol
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2. Market reaction and supporting factors
Despite initial pressure, the crypto market quickly showed signs of recovery in the Asian trading session on April 3, 2025.
Bitcoin has bounced off a key technical support level (200-day MA, around $82,000), indicating bottom-fishing buying from long-term investors. This is partly driven by the following factors:
- Trump's crypto-friendly policies: Trump previously signed an executive order to establish a Strategic Bitcoin Reserve in March 2025, which will include BTC, ETH, XRP, SOL, and ADA. Although the fund will mainly use confiscated assets (around 200,000 BTC), the move still reinforces the belief that the US is moving towards integrating crypto into the financial system. Many investors expect further policies to create more buying pressure, especially if Trump promotes buying BTC from the open market.
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Crypto Market Overview After Donald Trump’s New Tariffs (03/04/2025)
With a base tariff of 10% on all imports into the US and higher tariffs (25% on foreign cars, 20% on the EU, 34% on China, etc.), the crypto market has experienced significant volatility, reflecting both short-term panic and long-term potential.
1. Short-term Impact: High Volatility and Risk-Averse Sentiment
Immediately after the tariff announcement, Bitcoin (BTC) fell by about 2-3%, hovering around $83,000, while Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) suffered deeper declines, falling by 4-10%, respectively.
The Fear & Greed Index dropped to "extreme fear" (around 25), indicating that investors are shifting to safe-haven assets such as gold (up to $2,910/oz) and US bonds.
The main reason for this decline is concerns about the macroeconomic impact of tariffs. 0 reply
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