Bitcoin Selling Resumes
Bitcoin prices are back under pressure today, following a strong recovery rally yesterday off the 91,45 level lows. Bitcoin prices gapped heavily lower at the start of the week as traders reacted to news of Trump’s tariffs on Mexico, Canada and China. Risk assets came under heavy selling pressure across the board while the Dollar roared back to fresh YTD highs.
Trade War Impact
Later yesterday, news that Trump had postponed tariffs against Mexico and Canada for a month following both countries agreeing to meet his terms on border requests, crypto markets bounced back as risk appetite recovered on hopes that a trade war could be avoided. However, news overnight that China has retaliated with tariffs of its own against some US goods has rocked risk sentiment once again, leading Bitcoin prices down.
Near-Term Risks
Near-term, incoming news flow around the US/China trade war, as well as any fresh US tariffs against other countries, will remain key for Bitcoin prices. Any sign of the trade war intensifying is likely to lead BTC lower near-term, while any negotiations or easing of the trade war should see crypto prices recovering.
US Sovereign Wealth Fund
Traders will also be keeping an eye on incoming crypto-specific news from Trump. News yesterday that Trump has signed an executive order to establish the creation of a US sovereign wealth fund is an interesting development. While crypto wasn’t mentioned, this is certainly the sort of vehicle that could act as a vessel for Trump’s strategic bitcoin reserve with any news pertaining to the STR likely to help lift BTC sentiment.
Technical Views
BTC
Following the failure of yesterday’s recovery rally, BTC is now back below the $100k mark. While below, focus is on a fresh push lower and a further challenge of the $91,750 level. Back above $100k, $107,855 is the key hurdle for bulls near-term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.