BTC, XRP, and Solana (SOL) Surge as Trump's Tariff Plan Creates More Damage Than SEC's Regulations Dropping It to the Lowest Level of $80K

Trump's Tariff plan has created more damage than SEC's regulations dropping it to the lowest level of $80K. But now things are changing

Cryptocurrency prices rose on Monday morning in Asia as reports suggested that the upcoming Trump tariffs on April 2 might not be as aggressive as previously feared. This shift in expectations helped improve market sentiment, leading to a rally in both equities and cryptocurrencies.

Bitcoin and Solana (SOL) saw strong gains as Trump’s softer stance on tariffs calmed investor nerves. After a turbulent February, which saw Bitcoin decline nearly 17.6% amid concerns over Trump’s plans, recent reports suggested that the tariffs could be more targeted than previously anticipated. Some countries may be exempt, and the additional levies on steel and other metals might not be cumulative.

Initially, rumors of Trump’s tariffs sent markets lower, but this news helped calm investor fears and sparked optimism across financial markets. U.S. stock futures, including the S&P 500 and Nasdaq, saw a 0.5% boost, while the VIX, Wall Street’s fear gauge, dropped 2.5%.

The Federal Reserve recently updated its outlook, raising inflation expectations but sticking to its plan for two interest rate cuts this year. It also dismissed worries that tariffs would cause lasting inflation, calling the impact temporary. This has boosted confidence in riskier investments like Bitcoin.

Arthur Hayes, co-founder of BitMEX, believes Bitcoin will hit $110,000 before dropping to $76,500 again. He argues that the Fed’s shift from tightening to easing policies will keep the crypto market strong despite inflation fears.

Crypto traders are closely watching two key events this week. On March 27, the Senate Banking Committee will question SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould, potentially signaling regulatory shifts.

Meanwhile, Friday’s PCE reading, the Fed’s go-to inflation measure, will offer more insights into future monetary policy.

Cryptocurrencies are known for their volatility, and rapid price movements are common in the crypto market. As always, it’s crucial to conduct thorough research and invest at your own risk.