Tariffs Tantrums! 😱 Bitcoin’s Blunder?! 📉

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My dear fellow, the digital scrip known as cryptocurrency has, in the past day, taken a rather undignified tumble. One might say investors, with a distinct lack of sangfroid, have withdrawn from these “risky assets” due to what one can only describe as a rather uncivilized squabble between the Americans and the Chinese. ☕

The Americans, in a display of economic one-upmanship, have slapped tariffs on Chinese imports to the tune of 245%! A positively vulgar display. And, as if that weren’t enough, they’ve also placed new restrictions on chip exports. One shudders to think of the implications for the cocktail party circuit. 🍸

The Trump chap, bless his heart, has reportedly urged China to initiate trade talks, claiming the US doesn’t need a deal. A rather bold statement, wouldn’t you say? China, however, retorted that the US must cease using “pressure and threats” if they truly wish to resolve this mess through negotiations. A Chinese Foreign Ministry spokesman, a Mr. Lin Jian, declared, “For any dialog to happen, it must be based on equality, respect and mutual benefit.” One can only hope they remember these principles when serving tea. 🍵

The U.S., not to be outdone, had previously imposed a 145% tariff on Chinese imports, while China responded with a 125% tariff on U.S. goods. It’s all frightfully childish, isn’t it? 👶

Bitcoin and Broader Market Declines

Bitcoin, that digital bauble, has dropped over 2% in response, and the broader crypto market has plummeted 3.75%. One almost feels sorry for the poor souls who invested their fortunes in these ethereal trinkets. Stock markets, too, have been affected, with Nasdaq 100 futures falling over 1% and S&P 500 futures dropping 0.65%. Although Bitcoin had been behaving itself in earlier sessions, signs now suggest that its recent “bull run” might be coming to a rather abrupt halt. It is, at present, trading at $83,826, down over 2% in the past day. Oh dear! 😥

Besides, Bitcoin dropped below its 200-day simple moving average on March 9, which often signals major trend shifts. According to Coinbase institutional, this move suggests that Bitcoin’s sharp decline marks the start of a new bear market cycle which started in late March itself. One might need a stiff drink after hearing that. 🍸

The Bull Market Is Over?

Coinbase Institutional’s research head, a Mr. David Duong, has stated that a key risk-adjusted performance metric called the Z-score indicates that the crypto bull run likely ended in late February. The market, it seems, has since been moving sideways, neither bullish nor bearish, but neutral. A rather dull state of affairs, wouldn’t you agree? 😐

However, crypto prices have held up relatively well. A trader at market maker Wintermute believes that this stability gives traders more confidence to use protective strategies like hedging. Therefore, some prime brokers have moved from being cautious to neutral on risk assets. The upcoming market moves will likely depend on actual economic data. One can only hope the data is more exciting than the current market. 😴

The Macro Factors

Key economic data is set to be released this month, including a speech from Fed Chair today where investors expect insights on the next rate cut move. Meanwhile, the uncertainty in risk assets has pushed investor towards safer assets like Gold, which is now up over 26% this year, while dollar has dropped 9%. Gold also hit a new record high of $3,300 per ounce amid escalating US China tensions. One might consider investing in gold, just to be on the safe side. After all, one can’t go wrong with a bit of bullion. 💰

Analyst Ali Martinez has recently pointed out that Bitcoin is consolidating within a channel, and since the $83,200 support level is holding strong, there’s a good chance it could bounce back and rise toward the middle or top of that range. Let us hope that it does, for the sake of those who’ve invested their fortunes in this digital dalliance. 🙏

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2025-04-16 17:07