Trump’s ‘Liberation Day’: Could Crypto Markets See Recovery?
Recent market uncertainty surrounding US President Donald Trump’s tariff announcement on April 2nd may have reached its peak, potentially paving the way for a crypto market recovery, analysts predict. Trump’s reciprocal import tariffs sent shockwaves through global markets, triggering a significant drop in the S&P 500, exceeding even the pandemic-induced crash of March 2020.
Analyst Perspectives on Market Recovery
While some analysts, such as Michaël van de Poppe, see the tariffs as a clear indicator of market uncertainty, they also suggest this uncertainty is now a known factor. He believes this clarity could lead investors to start buying the dip, potentially driving a crypto market recovery. Van de Poppe further speculates that Trump’s tariffs are a strategic move to boost domestic growth, potentially leading to Federal Reserve easing and quantitative easing (QE), which could significantly impact Bitcoin’s price according to some predictions.
Potential Risks and Counterpoints
Not all analysts share this optimistic outlook. Noelle Acheson, for example, suggests that market uncertainty surrounding the tariffs could persist for weeks, affecting investor confidence and potentially causing a risk-off behavior. She also notes that Bitcoin might continue acting as a risk asset in the short term, as seen during the current market downturn. Crypto intelligence firm Nansen projects a 70% probability of a market bottom by June, subject to the evolving tariff negotiations.
Decentralized Exchange (DEX) Dynamics
Despite a recent $6.2 million exploit on the Hyperliquid DEX, the decentralized exchange sector continues to gain traction, challenging centralized platforms (CEXs). This exploit highlights potential risks in DEX infrastructure and the evolving competition between DEX and CEX ecosystems.
XRP Price Projections: Expert Predictions vs. Market Skepticism
A Korean financial analyst, known as XForceGlobal, is predicting a significant surge in XRP’s price, potentially reaching $10-$20 in the coming months. This prediction is based on Elliott Wave theory, but it remains highly controversial given the massive price increase required. Statistics show rising trading interest in XRP, despite the overall market downturn. Macro investor Luke Gromen also notes the possibility of Bitcoin and the Nasdaq diverging, potentially signaling a significant shift in market behavior.
