Cryptocurrencies Struggle to Recover as Bitcoin Falls Below $83,500
The cryptocurrency market continues to experience high volatility, failing to show signs of a sustained recovery after recent shocks.
Bitcoin (BTC) is down 1.4% in the last 24 hours, trading below $83,500 according to Binance, while Ethereum (ETH) has fallen 2.2%, slipping below $1,600.
Although cryptocurrencies showed some early gains on Tuesday, the trend turned decisively negative by the end of the trading session.
The global context continues to weigh heavily on markets. The ongoing trade dispute between the United States and China—driven by President Donald Trump—remains a major source of uncertainty. On Monday, stock markets reacted positively to the announcement of temporary tariff exemptions on certain electronic goods. However, Trump clarified that key products like smartphones and chips would still face specific tariffs.
The prospect of the trade conflict escalating again is keeping investors on edge. In the coming days, representatives from Europe and Asia are expected to visit Washington in hopes of reaching an agreement to avoid the reimposition of tariffs, which were postponed for 90 days last week.
Truce Between Trump and the Fed Fails to Ease Fears
Despite the temporary tariff relief being welcomed by markets, investor confidence remains fragile. Institutions such as JP Morgan, led by CEO Jamie Dimon, warn that the current environment could push the global economy—especially the U.S.—toward a recession. Ray Dalio, influential investor and founder of Bridgewater Associates, takes it a step further, suggesting that Trump’s policies could trigger a structural disruption of global trade and reshape geopolitical relationships.
“We are shifting from a U.S.-led multilateral order to a more unilateral environment marked by deep conflict,” Dalio warned.
There are also signs of concern on the monetary front. Federal Reserve Governor Christopher Waller stated that a reactivation of Trump’s tariffs could force the central bank to respond swiftly, with more aggressive rate cuts than previously anticipated. According to Waller, the potential negative effects on economic activity and employment could be long-lasting, requiring a more expansionary monetary policy stance.
Market expectations reflect these worries: data from CME Group’s FedWatch tool show that investors are now pricing in three to four rate cuts in the near term, driven by fears of a sharper slowdown. However, not all members of the Fed agree. Officials like Neel Kashkari and Austan Goolsbee have expressed caution, warning that such rate cuts could pose risks to inflation stability.
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