Bitcoin on record course due to Trump's tariff break: Will the boom last?

Bitcoin on record course due to Trump's tariff break: Will the boom last?

Cryptocurrency markets are experiencing an extraordinary rally after US President Donald Trump announced a tariff pause. This decision has resulted in the market capitalization of the entire crypto market increasing by $100 billion to now $3.44 trillion. Bitcoin, the leading cryptocurrency, crossed the psychologically important $110,000 mark and hit an intraday high of $110,339 on Tuesday.

The Bitcoin price is currently at $109,100, while analysts expect that the price could possibly target $111,700. The positive developments also include the renewed willingness to buy among large investors, which indicates a possible trend reversal. Most notably, net inflows into Bitcoin ETFs in the US reached 7,869 BTC on May 23, which is the highest since April 29.

Market reaction and tariff increase

Markets appear to remain stable despite the threat of tariff increases on July 9th. Trader KillaXBT predicts that Bitcoin could reach at least $113,000 in the coming days. Observations of the reactions of the S&P 500 and the traditional stock markets to Trump's announcements are crucial for the further development of the crypto market. Some analysts suggest that Bitcoin price will remain bullish if it breaks above $85,400.

Nevertheless, the overall sentiment in the crypto market is shaped by the “Crypto Fear & Greed Index,” which continues to indicate a fearful market sentiment. This uncertainty is partly caused by ongoing geopolitical tensions, particularly related to China. Despite these challenges, Bitcoin has proven in the past that it can recover from such turmoil.

Looking at Ethereum and competition

Compared to Bitcoin, Ethereum (ETH) has lost value, recording a decline of 56.46 percent year-on-year, as well as declines of 17.85 percent in the last month and 14.77 percent in the last week. Despite this poor performance, Ethereum remains a leader in the decentralized finance (DeFi) space. Crypto scientists at Santiment still advise against selling Ethereum as bearish market sentiment could potentially encourage a rally.

The Bitcoin conference taking place tomorrow could bring additional volatility to the market, so investors and traders should pay close attention to both Bitcoin developments and broader market indicators. The coming days promise to gain more excitement and momentum as markets react to what's next.

Further details can be found at InvestX and FTD.