While Bitcoin $BTC and Ethereum $ETH and Ripple $XRP and Solana #SOL ended today's trading with slight increases, the renegotiations between the U.S. and some of its foreign trading partners did not significantly impact the cryptocurrency market.
However, according to analysts, despite these positive developments, cryptocurrencies remain stuck in a narrow price range.
For example, Bitcoin prices have fluctuated significantly between $107,000 and $110,000 in recent weeks. It has risen only 1.5% in the past thirty days, yet it remains close to its all-time high. Ethereum prices have traded sideways around $2,500 for almost a month, while Solana has also stabilized around $150.
The decline of cryptocurrencies following the "retaliatory tariffs" announced by President Donald Trump in April contrasts with the recent stability. Some investors find it difficult to understand why the market has held up despite Trump's recent threats to impose tariffs. However, analysts say this is not surprising. Experts say that investors are less responsive to the U.S. delaying negotiation dates three times and are more inclined to take a suitable stance toward the macroeconomic uncertainty, allowing digital assets to remain elevated despite the uncertainty.
Trump sent official messages on Monday to 14 countries, including Japan, South Korea, and Thailand, warning them that he would impose strict tariffs. These tariffs, expected to range from 25% to 40%, are set to take effect on August 1. However, they may also be postponed.
Brett Kinnevil, an options analyst, stated that investors believe Trump will delay the scheduled tax cuts on August 1, which has even become the subject of a meme coin called "Trump Always Backs Down."
Kinnevil said, "If there is confidence in the continuation of negotiations or an extension of the deadline, the market may continue to ignore such headlines." He also noted that any pullbacks would be seen as buying opportunities for investors, which could bring prices back to their current range.
Greg Majdini, director of derivatives at Amberdata, stated that investors have become accustomed to Trump's volatile trade negotiations and are now more resilient in the face of these macroeconomic developments.
Majdini also indicated that institutional investors have been keen to hedge against the risks of exposure to BlackRock's iShares Bitcoin Trust ETF (IBIT) over the past seven months by trading options. Under this strategy, investors buy shares of the IBIT ETF, sell call options on it to generate income, and purchase put options to reduce risk. #OneBigBeautifulBill #MuskAmericaParty #TruthSocialCryptoBlueChipETF #DayTradingStrategy
