Bitcoin saw a strong rebound last night, boosting the overall cryptocurrency market, primarily because investors bet that the tariffs soon to be announced by Trump might be milder than expected. However, the market remains on alert for the potential impact of the trade war, fearing that subsequent market movements may not be as optimistic as imagined.
According to CoinGecko data, Bitcoin briefly surpassed $85,000 in the early hours of today (2nd), and as of writing, it has fallen back to $84,000, but the increase in the past 24 hours still reached 2.5%.
The market is buzzing with discussions about Trump's upcoming tariff announcement, with investors inclined to believe that the new policies won't be as harsh as previously expected.
After weeks of price stagnation, the market has been suppressed for a long time. Now, any hint of good news could quickly trigger FOMO (Fear of Missing Out) sentiment, leading to a price rebound.
If tariff policies ultimately strengthen the dollar or slow global economic growth, then risk assets like Bitcoin may still face impacts. Market fluctuations are inevitable, and this is a time for investors to observe the changes to determine if their predictions are accurate.
Concerns over the trade war remain unresolved, and the market continues to watch.
As Bitcoin rebounds, traditional financial markets are also seeing a recovery. In the U.S. stock market, the Nasdaq and S&P 500 indices rose by 0.87% and 0.38%, respectively. However, market risk aversion remains, with gold prices continuing to rise, indicating that investors still harbor uncertainty about the future.
In the past few weeks, the Trump administration's tariff policies toward major trading partners have been erratic, causing market sentiment to fluctuate. It wasn't until Trump stated on Tuesday that 'the final tariff plan has been confirmed' that the market finally felt relieved about this prolonged trade dispute.
Nevertheless, the overall market remains suppressed by economic uncertainty, with many investors worried that the trade war could trigger stagflation. The U.S. March PMI index shows that price increases have reached a new high since mid-2022; manufacturing activity continues to shrink; and the consumer confidence index has hit a four-year low.
From a risk management perspective, the market is still in a wait-and-see mode, looking for further clarity on tariff policy details.
The price increase on Tuesday 'may suggest that the market is gradually shifting towards buyers, expecting that the impact of tariff policies may not be as severe.'
Recently, investor sentiment has turned optimistic, partly due to expectations that the new round of tariffs may be more targeted and won't impact all trading partners broadly or impose tariffs on specific goods.
Such expectations have contributed to a slight rebound in the cryptocurrency market recently.
Overall, the market remains cautious, as the scope and implementation of the final tariff policy will directly affect market trends. Therefore, while there is a slight atmosphere of optimism, the situation remains volatile, and market sentiment may change with the release of more details.
Today's fear index is 44, still in a state of panic.
There are no obvious major benefits, but the market has seen a slight rebound, with Bitcoin climbing to 85,000 and Ethereum currently at 1,900. Yesterday, I reminded everyone that those who entered at 8.2 and 1,800 can hold on a bit longer; today we’ll have to see how the situation unfolds, as late news is expected to cause significant volatility.
Currently, the funding rates for mainstream CEX and DEX indicate that the crypto market is still in a bearish trend. If there is a significant drop tonight, it might be a good opportunity to buy. 82,000-80,000-77,000-75,000.
