Cryptocurrency Market Update

While Bitcoin, Ethereum, XRP, and Solana finished the day with slight increases today, the U.S. renegotiation with some foreign trade partners did not affect the crypto market much.

Current Trends

Despite the positive developments, cryptocurrencies are still stuck in a narrow price range. Bitcoin has traded largely between $107,000 and $110,000 in recent weeks, up only 1.5% in the last 30 days, but is still close to its all-time high. Ethereum has been trading sideways at $2,500 for about a month, while Solana remains stable around $150.

Market Resilience

The decline in cryptocurrencies after the retaliatory tariffs announced by U.S. President Donald Trump in April contrasts with the recent stability. Some investors are struggling to understand why the market remains resilient despite Trump’s latest tariff threats. Analysts suggest this isn’t surprising, as investors are less responsive to the U.S.’s repeated postponement of negotiation deadlines. They are more inclined to position against macroeconomic uncertainty, keeping crypto assets elevated.

Tariff Threats

On Monday, Trump sent official letters to 14 countries, including Japan, South Korea, and Thailand, warning of aggressive tariffs ranging from 25% to 40%, expected to take effect on August 1, although a possible delay is also on the agenda.

Investor Sentiment

Options analyst Bret Kenwell noted that investors believe Trump may delay the August 1 tax cuts, leading to the emergence of a memecoin called “Trump Always Chickens Out.” He suggested that if there is confidence in continued negotiations or an extended deadline, the market may ignore negative headlines. Any pullbacks may be seen as buying opportunities, which could support prices in the current range.

Greg Magadini, director of derivatives at Amberdata, highlighted that investors have become accustomed to Trump’s trade negotiations, making them more resilient to macro developments. He mentioned that institutional investors have been hedging their exposure to BlackRock’s iShares Bitcoin Trust ETF (IBIT) through options trading, which helps them manage risk while generating income.

*This is not investment advice.