The Trump Effect: Could His Tariff Tantrum Trigger a Crypto Catastrophe?

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Ah, cryptocurrency—always an exciting topic, isn’t it? Just when we thought things were settling down, along comes Donald Trump with his ever-so-predictable decision-making skills, and voilà, Bitcoin prices start soaring faster than a Twitter storm. Thanks to Trump’s sudden bout of magnanimity in pausing tariffs for 90 days on the majority of countries, Bitcoin is back to flirting with the $85,000 mark. Not to be left out, those other digital upstarts like Flare, Fartcoin, Ethereum, and the ever-so-hilarious Pepe are all showing double-digit gains. But let’s pause and ponder: what happens if Trump flips his tariff switch back on? A crash, that’s what.

The Markets Get a Brief Respite—Because Trump Paused Tariffs. For Now.

Last week, the world of stocks and cryptos went on a little joyride. Trump, in his infinite wisdom, graciously decided to take a 90-day break from his tariff escapades on over 70 countries. This move, which was so generous it almost felt like Christmas, gave the market a sugar rush, leading to some hopeful optimism. In fact, it sent the message that Trump might, just might, be willing to engage in adult-like negotiations with Japan and South Korea. They might even swap some nice pens.

Then, to further stir the pot, the administration announced that certain items, like smartphones and semiconductors, would get a tariff-free pass. This, of course, was an obvious move, given that a 145% tariff on Chinese-made iPhones would’ve made them, well, more exclusive than a luxury yacht. Besides, it would’ve sparked a new kind of “compare and contrast” game between consumers—only this time, it wouldn’t be about fashion.

The markets loved this. Tech stocks, in particular, shot up like a rocket. The Nasdaq 100 index saw an impressive 310-point jump. Apple shares enjoyed a 3.8% increase, and Microsoft gleefully followed suit with a 1.5% rise. NVIDIA and AMD joined in on the fun, all of them dancing in a big, techie conga line.

And, because crypto and tech have this rather uncanny ability to mimic each other’s movements, Bitcoin and other cryptos like Fartcoin and Solana decided to join the rally, rebounding in style. But let’s not get too comfortable, shall we?

The Crypto Market: A Tick-Tock Timer Until Trump Has Another ‘Great Idea’

Now, let’s talk about the great big “what if.” What if, just what if, Trump wakes up one morning and—oh, I don’t know—decides that the tariff pause was just a brief moment of weakness? What if the next Fox News headline sends him into another frenzy of tariff-pounding? You see, the problem with Trump is that his policy decisions can change faster than a caffeinated squirrel. And that’s a problem for the markets.

Take last week, for instance. Trump, in one of his famed reversals, decided to impose a whopping 145% tariff on Chinese goods. A mere 24 hours later, he had a change of heart and excluded smartphones and electronics from his list. Which is wonderful, except for one thing: now China isn’t playing ball. No tariff reduction in return. Oops. If that doesn’t smell like a potential crash, I don’t know what does. Brace yourself—recession risks are not far behind.

Bitcoin’s Fate Hinges on Trump’s Next Move (Spoiler: It’s Anyone’s Guess)

Let’s now take a peek at Bitcoin’s technicals, which, as always, are as reliable as a weather forecast in April. The latest chart shows Bitcoin being a bit… well, indecisive. It’s stuck below its 50-day moving average, which is usually a polite way of saying that there’s still a heavy load of bearish pressure looming over it. It’s not even moving in a defined trend—how typical, right? A breakdown to the support level at $76,495 is entirely possible, given that it’s the lowest point Bitcoin has seen since March 11. If that happens, brace yourselves—because another dip could see the cryptocurrency market sliding all the way down to $70,000. And when that happens, don’t be surprised if other cryptos like Fartcoin get a little, well, lonely.

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2025-04-14 19:37