A fresh round of customs duties from US President Donald Trump and a lack of short -lived catalysts is spur for caution from market surveys who believe Ethereum’s Ether (ETH) may be particularly affected.
Trump said on Sunday that he will introduce 25% tariff rates on all steel and aluminum imports in the United States, at the top of existing tasks, with mutual tariffs later in the week that apply to all countries.
The rhetoric and increase in inflation expectations could breed the disadvantage volatility with a key indicator that foresaw a step over $ 100,000 for Bitcoin when it traded under $ 70,000 and became Bearish on Sunday.
Crypto Majors remained a little changed in European afternoon hours Monday, with us futures dow and the S&P 500 up 0.46% ahead of the New York Open. Bitcoin, Ether, XRP, Solana’s Sun and Dogecoin (DOGE) increased less than 1% over the last 24 hours, while the BNB chain’s BNB lost 4.5% after a Sunday rally.
Tarke introduces economic uncertainty in potentially escalating trade war, which can lead to market volatility – such events tend to affect Bitcoin and the wider crypto market as investors tend to move away from risk assets to safer investment.
Some dealers say ether could be further affected as the mood for crypto fades down, which adds an already tumultuous year for the asset that saw a widely seen Bitcoin-Ether relationship fall to 2021, indicating a fallout for ETH and preference for BTC.
A decrease in ETH can further spell bad news for related beta bets such as Memecoin Dogecoin (DOGE) and Ethereum-based defi-tokens that tend to mirror the movements of the parent company.
“The advent of BTC vs everything else is the most clear in comparison to ETH, who sees record short interest and fud with the 2nd largest token that is down -23% YTD vs A +2.5% gain in BTC, “Augustine fan, head of insight on SignalPlus told Coindesk in a telegram message.
“The risk of sounding like a broken record, but a lack of L1 catalysts and narrative leadership is likely to continue to weigh in Ethereum in the foreseeable future,” Fan added.
“Ethereum has been hit particularly hard when Eth turned the entire pump from the end of November last year and escaped any winnings for holders,” Nick Ruck, director of LVRG Research, shared in a telegram announcement. Due to the expectations of increased inflation, investors are only focusing on an interest rate set up by the Federal Reserve this year and is throwing a bleak prospect of risk assets, including crypto. “
Meanwhile, dealers at Singapore-based QCP Capital expect crypto markets to turn flip in the coming weeks as Trump’s words continue to affect markets.
“A feedback -loop emerges – President Trump, who is very sensitive to market reactions, is facing a market that is increasingly calling his bluff. This could further the office and add another layer of volatility, ”the company said in a Monday broadcast message.
“BTC volatility is now leaning in favor of sets until April, reflecting a lack of upward catalysts,” it concluded.
