by Enoch Mwathwa
Market participants show negative reactions to the import tariffs enacted by Donald Trump which put pressure on cryptocurrency values. The price for Bitcoin (BTC) fell under $85,000 while the market values for Ethereum (ETH) and Ripple (XRP) continued to decrease. Market sentiment continues to decline because the crypto fear and greed index shows values below 20. Market analysts track price milestones and they follow the upcoming Federal Open Market Committee (FOMC) meeting to gain market direction.
Market Reactions to Trump’s Tariffs
The recent tariff issues have caused volatility in stock market performances together with cryptocurrency valuations. Market participants worry about tariffs which might slow down international commerce together with economic growth.
Throughout the past market disruptions because of governmental policies triggered significant price oscillations. Detailed historical records show the 2013 taper tantrum as a famous event that occurred following the Federal Reserve’s quantitative easing reduction program. The new trade barrier measures create recession anxieties that threaten to affect cryptocurrency market value. The trading firms PIMCO and Goldman Sachs together with JPMorgan warned investors about economic deterioration resulting from tariff policies.
FOMC Decision and Its Effect on Crypto Prices
The FOMC meeting stands as a vital time that might shape the future direction of crypto prices. The Federal Reserve will update interest rate policies during the upcoming meeting because these policies directly affect risk assets such as cryptocurrencies.
A Fed announcement indicating future interest rate reductions has the potential to improve BTC, ETH, and XRP market value. When interest rates decrease riskier investments receive more demand from investors because they look for higher returns. The prices of cryptocurrency will likely remain bearish if the Federal Reserve decides to maintain its current restrictive policy measures.
Bitcoin (BTC) Technical Analysis
A double-top pattern at $108,300 caused Bitcoin to display weakening signs as its price fell beneath the neckline at $89,000. The bearish trend was confirmed after the price dropped below its neckline at $89,000.
The WMA pattern on BTC resulted in a death cross when the 50-day WMA descended below the 200-day WMA. The Percentage Price Oscillator (PPO) as an MACD indicator variation currently sits beneath its zero line which indicates the market needs to decline more.
The support area at $73,630 stands as the next target for Bitcoin if bearish momentum maintains its energy in the market. This support was first observed in March of 2023. For the bearish forecast to become invalid BTC must rise above the $89,000 mark.
Ethereum (ETH) Technical Analysis
Ethereum prices experienced continuous downtrend formation after reaching $4,000 three times in succession. Recent price movement showed a bullish confirmation when the market dropped below the essential support stage at $2,115.
The Average Directional Index now stands at the level of 40 which signifies robust bearish market pressure. Selling pressure could lead ETH to fall toward its subsequent important support level of $1,500. The market would regain purchasing power if traders succeeded in breaking above $2,115.
Ripple (XRP) Technical Analysis
The price of XRP showed a brief recovery while it interacted with its essential support mark at $1.9614. The support level at $1.9614 holds historical importance because it served as the previous head-and-shoulders pattern neckline.
The price of XRP might experience short-term growth if it stays above this specific level. The failure to keep price support will likely lead to a price decrease that could reach $1 or even below that level. A price rise above the right shoulder resistance may start a possible change in the current downward trend.
Conclusion
The cryptocurrency market shows heightened sensitivity toward overall economic changes and indicators. The current tariffs along with the pending FOMC judgment will function as critical determinants of BTC and ETH alongside XRP price fluctuations. Heightened focus on market support and resistance levels combined with updated policy information needs to be maintained by investors.
#blockchain #crypto, #decentralized, #distributed, #ledger
