Bitcoin Bounces Back: Breaking Down the Market Movements
As the crypto market faced a downturn, Bitcoin managed to maintain its position over $83,000 early on Monday. Despite four days of declining prices, Bitcoin is showing resilience. Crypto market capitalization faced a 2% dip, reflecting traders’ cautious approach ahead of the anticipated Trump’s Liberation Day.
The Impending Liberation Day: What Traders are Watching
April 2 is marked on the calendars as Liberation Day when President Trump’s wave of new tariffs takes effect. Aimed at 15 major trading partners, these tariffs could create ripples across global markets. Anticipating volatility, traders are exercising caution, with many crypto categories seeing a notable impact.
A Potential V-shaped Recovery for Bitcoin?
There’s optimism that Bitcoin might see a V-shaped recovery, rallying towards the $85,000 resistance mark. The momentum indicators such as the RSI and MACD are backing this sentiment, as they both exhibit bullish signs. A consistent upward trend could pave the way to recover past milestones.
According to FXStreet, a continuation of this trend might realign crypto market dynamics in favor of seasoned and new investors alike.
Market Categories Facing the Brunt
In the wake of anticipated market shifts, tokens related to AI, meme coins, and mining tokens were hit the hardest. With dips ranging between 3% to 5%, these categories reflect traders’ risk-aversion stance ahead of policy changes.
Insights from Experts: Dan Greer on Strategic Crypto Reserve
Dan Greer, co-founder of DeFi App, sees the Trump administration’s Strategic Crypto Reserve as a game-changer. He predicts a shift in how crypto’s position is leveraged globally. He also anticipates some level of Bitcoin accumulation by the US government, although possibly through a phased approach.
The Path Ahead: Predictions for Crypto Policy Shifts
With stablecoin legislation waiting on bipartisan support and executive orders likely to address digital asset infrastructure, 2025 holds significant potential for crypto advancement. Concrete steps toward operationalizing the Strategic Crypto Reserve could signal a new era for governmental engagement with decentralized technologies.
The road to such prospects is paved with both enthusiasm and uncertainty, as traders and stakeholders gear up for a defining phase in crypto’s journey.