empty
04.02.2025 11:34 AM
Why crypto market perks up susprisingly quickly

After yesterday's news about the introduction of trade tariffs by the White House, the total volume of liquidations in the cryptocurrency market exceeded $2 billion. However, shortly after, as reports emerged that tariffs on Mexico and Canada would be postponed for one month, Bitcoin and Ethereum quickly regained their positions—though Ethereum had a much harder time doing so.

This image is no longer relevant

Despite the fluctuations triggered by new economic measures, investors are beginning to recognize the resilience of the cryptocurrency market. Bitcoin's recovery was seen as a positive sign by many investors, highlighting its ability to respond swiftly to changes in the investment climate. This underscores Bitcoin's role not only as an asset but also as a hedging instrument. Ethereum, on the other hand, faced greater challenges, with its recovery hindered by liquidity constraints and technical factors.

The situation with trade tariffs serves as a reminder of the deep interconnection between traditional financial markets and cryptocurrencies. Macroeconomic uncertainty is forcing traders to reassess their strategies, which could lead to further volatility in the future. However, for long-term investors, such market behavior presents yet another opportunity to capitalize on high-risk conditions.

Trump's WLFI and Ethereum's struggle

When it comes to Ethereum's difficulties, the Trump-backed project World Liberty Financial (WLFI) provided some support. According to Cointelegraph, the fund purchased 86,000 ETH worth $220,000 yesterday—far below its usual ETH purchases of $10 million per lot. This led to Ethereum's balance doubling within the fund.

Ethereum's sharp decline has been a hot topic in the cryptocurrency community, and World Liberty Financial's actions have only fueled interest in the token. The purchase of 86,000 ETH for $220,000 might seem like a minor transaction in an active market, but its impact on supply and demand dynamics should not be underestimated.

Funding from major players like WLFI creates a positive trend that could encourage other investors to buy Ethereum. Expectations for the token's future are rising, potentially leading to new investments and further price growth. Moreover, the emergence of more direct and large-scale investments in ETH could boost trust in the cryptocurrency.

Bitcoin's long-term outlook amid tariff reversals

Another key issue is the trade tariffs imposed and then temporarily revoked by Trump. According to several experts, this could lead to long-term BTC price growth due to the weakening of the US dollar on global currency markets and a decline in US Treasury bond yields.

This image is no longer relevant

Technical outlook for Bitcoin

Currently, Bitcoin buyers are targeting a return to the $99,500 level, which would open a direct path to $101,200, bringing BTC within reach of $102,600. The furthest target is $103,800, and breaking this level would signal a return to a medium-term bullish market.

In case of a downturn, buyers are expected to step in at $97,900. A move below this area could rapidly push BTC down to $96,500, with $95,600 being the next key level. The furthest support stands at $93,200.

This image is no longer relevant

Technical outlook for Ethereum

Ethereum's firm consolidation above $2,733 opens a direct path to $2,787, with the next target at $2,843. The ultimate goal is the yearly high of $2,889—breaking this level would confirm Ethereum's return to a medium-term bullish market.

If a correction occurs, buyers are expected at $2,665. A move below this zone could push ETH quickly down to $2,609, with the furthest downside target at $2,532.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trading Recommendations for the Cryptocurrency Market on July 14

Bitcoin hit another all-time high above $122,000, continuing its winning streak. Ethereum has also strengthened and is trading above $3,000, but has not yet reached the all-time high. Bitcoin's rally

Miroslaw Bawulski 09:53 2025-07-14 UTC+2

Bitcoin Forecast for July 14, 2025

Bitcoin Bitcoin is showing extreme boldness amid the general market sentiment of risk aversion. However, if such sentiment continues, the upper limit of Bitcoin's growth also becomes visible — 125,190

Laurie Bailey 05:31 2025-07-14 UTC+2

Litecoin is attempting to test its nearest resistance level, Friday, July 11, 2025.

Litecoin, Friday, July 11, 2025. Litecoin managed to break through and close above its pivot level. Although there is potential for a correction, positive fundamental factors provide an opportunity

Arief Makmur 08:00 2025-07-11 UTC+2

Trading tips for crypto market on July 10 (North American session)

Bitcoin and Ethereum traded higher today during the European session, which indicates that yesterday's purchases were not a one-time event and that buyers are still active in the market. This

Miroslaw Bawulski 16:25 2025-07-10 UTC+2

Crypto market shows extremely low volatility

Bitcoin volatility has dropped to a historic low, while Bitcoin itself is trading within 2% of its all-time high. The lack of willingness to buy at current prices could become

Jakub Novak 13:46 2025-07-09 UTC+2

Crypto market resilient despite dollar volatility

BTC/USD is rising again today after yesterday's dip, overall maintaining its bullish momentum. Fundamentally, conditions continue to support BTC/USD growth in the medium term. The global economic and market landscape

Jurij Tolin 14:14 2025-07-08 UTC+2

Japan's digital bank by Metaplanet

While Bitcoin stubbornly refuses to decline, fueled by massive demand from ETF funds, the Japanese firm Metaplanet is planning to use its Bitcoin reserves to create the first digital bank

Jakub Novak 13:46 2025-07-08 UTC+2

Trading tips for crypto market on July 8

Both Bitcoin and Ethereum remain on a sound footing, poised to continue a bullish trend. As long as BTC continues trading above the $105,000 mark, the odds of further growth

Miroslaw Bawulski 12:16 2025-07-08 UTC+2

Clarity act on digital asset market gains support

Bitcoin and Ethereum have returned to the channels in which they spent most of last week. While Bitcoin has yet to break above the $109,000 mark, the prospects

Jakub Novak 11:00 2025-07-08 UTC+2

Elon Musk's America party advocates for Bitcoin and digital assets

The recently formed political party, America Party led by Elon Musk, will support Bitcoin. This was announced by the Tesla CEO himself on social media. "Fiat is hopeless

Jakub Novak 15:31 2025-07-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.