The financial and cryptocurrency markets are witnessing strong fluctuations as U.S. President Donald Trump extends the tax delay on goods from Mexico. Bitcoin, after hitting 92,750 USD on Thursday, has fallen below 89,000 USD, reflecting the unstable sentiment of investors regarding U.S. trade policies.
Trump Delays Tax - Bitcoin Volatile
Trump announced on social media #TruthSocial that Mexico will not be taxed on any items under the U.S.-Canada-Mexico Agreement (#USMCA ) until April, a move seen as an effort to maintain a good relationship with Mexican President Claudia Sheinbaum.
Previously, the Trump administration unexpectedly delayed a 25% tax on goods from Mexico and Canada, causing mixed reactions in the financial and cryptocurrency markets.
📉 Bitcoin fell from 92,750 USD to below 89,000 USD
📈 XRP rose 3.6% to 2.57 USD
📉 Cardano fell 6% to 0.89 USD
⚖ Ethereum and Solana remain stable at 2,200 USD and 144 USD respectively
Although Bitcoin is still trading below the peak of 94,800 USD on Sunday, Trump's move has sparked a wave of speculation, especially as he continues to push for the creation of a "strategic cryptocurrency reserve" involving Bitcoin, Ethereum, $SOL , $XRP and Cardano.
Is Trump Looking to Stabilize the Crypto Market?
This Friday, the White House will hold a conference on cryptocurrency, bringing together industry leaders. According to Valentin Fournier, an analyst at BRN, this event could play a crucial role in redirecting the market:
“A clear and actionable roadmap will be a major catalyst for the market to explode, initiating the strong bull run that investors are anticipating.”
This indicates that the policy of $TRUMP is not only focused on trade but also aimed at the stability and long-term development of the crypto market.
Trade War Raises Concerns About Recession
In addition to its impact on cryptocurrencies, trade tensions are also negatively affecting the U.S. economy:
❗ The Atlanta Federal Reserve's forecast indicates that the U.S. economy could decline by 2.8% in the first quarter
❗ The highest job cut rate since July 2020, according to a report by Challenger, Gray & Christmas
❗ The financial market is predicting up to 3 interest rate cuts this year, more than the previous forecast of just one time
This data shows that the market is not only concerned about inflation but also worried about the risk of economic recession.
Will Bitcoin Maintain Its Uptrend?
In this volatile context, Bitcoin still has the potential to benefit if the White House outlines a clear strategy for crypto reserves. If this plan is implemented specifically, it could provide a strong boost for the entire cryptocurrency market.
However, if trade tensions continue and the U.S. economy faces a recession, Bitcoin could become a safe haven or face further selling pressure from investors.
The question is: Is the current adjustment of Bitcoin just temporary or does it signal a deeper decline? 🚀