
Crypto Markets Show Early Signs of Stability Amid Tariff Concerns, Long-Term Optimism Persists
Despite recent volatility fueled by profit-taking and renewed trade tariff fears, major cryptocurrencies are showing signs of finding a bottom, while investor confidence remains strong over the long run.
Bitcoin (BTC) traded near the $105,000 mark during early Monday Asian sessions, with limited movement over the past day but a 5% dip from last week’s highs.
Other leading tokens like Ether (ETH) at $2,523.67, XRP at $2.15, Solana (SOL) at $153.21, Cardano (ADA) at $0.67, and Dogecoin (DOGE) at $0.19 experienced similar price behavior, hinting at the formation of support levels and potential rebound opportunities for day traders.
“Bitcoin remains around $105K as market participants digest ongoing macroeconomic uncertainties,” said Nick Ruck, Director at LVRG Research. “Inflation worries, tariff disputes, and broader US economic concerns have dampened crypto’s bullish momentum, while geopolitical tensions have prompted some capital withdrawals.”
Nevertheless, Ruck remains optimistic: “The crypto industry’s long-term prospects look positive as institutional adoption and user engagement continue to grow steadily.”
Tensions in trade policy added pressure this week, as China responded to new US restrictions on AI chip exports and software sales by pledging countermeasures, keeping markets cautious.
“Last weekend’s developments highlighted how sensitive cryptocurrencies are to even minor escalations in trade conflicts,” observed Jeff Mei, COO of BTSE, in a message to CoinDesk.
Mei advised traders to monitor ongoing diplomatic developments between China and the US, the situation in Russia and Ukraine, as well as upcoming US economic data releases, including trade deficit figures, employment stats, and Federal Reserve commentary.
“Market action remains largely driven by macro news, making short-term predictions challenging. However, institutional accumulation of crypto assets continues, signaling positive longer-term momentum,” Mei added.
In parallel, investors are diversifying their portfolios by adding tokens like XRP and Solana. Bitcoin’s price increasingly mirrors traditional risk assets, a trend some interpret as a bullish sign for the sector’s future.
“Trade policy uncertainty drives capital toward tech growth stocks, but smart investors are also expanding crypto exposure—especially to assets like Bitcoin and XRP with growing ETF potential,” said Kathy Qu, Research Manager at HashKey Cloud.
She further highlighted that staking and decentralized finance continue to shine in the market, with real-world asset tokens gaining traction. Ethereum ETFs are poised to benefit from the SEC’s recent staking exemption, a move expected to boost institutional involvement in DeFi.
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