U.S. President Donald Trump has once again confirmed his intention to proceed with reciprocal tariffs, even as the current 90-day pause remains in effect. His firm stance is fueling uncertainty in the markets — particularly in crypto, where prices are already starting to drop.
Crypto Market Under Pressure from Trump's Trade Strategy
In a post on Truth Social, Trump declared that tariffs will soon be reinstated, while promising that the U.S. economy is headed for a boom. He added that if the crypto market were to dip, it would not be due to tariffs — instead, he blamed President Joe Biden's administration for any potential downturn.
Despite his reassurances, the impact on the crypto sector is hard to ignore. Bitcoin and altcoins saw significant losses the last time Trump announced tariff plans. While markets recovered after the 90-day suspension, the risk of a new sell-off is now back on the table.
Bitcoin Recovered — But the Uncertainty Lingers
Bitcoin had surged above $90,000 after the temporary pause on tariffs was announced. However, this recovery might be short-lived. If the U.S. resumes its full tariff agenda against international exports, those gains could quickly evaporate.
Fed Unlikely to Cut Rates in May — But Traders Expect Four Cuts in 2025
Another source of pressure is the stance of the Federal Reserve (Fed). Current market data shows a 90%+ chance that rates will remain unchanged at the upcoming May FOMC meeting.
That puts additional strain on crypto markets. However, many traders still expect the Fed to cut rates four times later this year — in June, July, September, and December.
Bank of America shares a similar forecast, although it initially expected the first cut to come in May.
Summary
🔹 Trump sticks to his tariff plan — markets turn cautious
🔹 Bitcoin faces renewed downside risk
🔹 No Fed rate cuts expected in May, but four possible by end of 2025
Whether the crypto market can weather another round of geopolitical tension remains to be seen — or whether Trump’s tariff strategy will trigger another wave of sell-offs.
#cryptocrash , #TRUMP , #CryptoMarket , #Tariffs , #CryptoNewss
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