Despite Trump's Trade War Threats, Crypto Markets Remain Stable

Despite the threat, crypto markets remained stable, with bitcoin holding steady at about $87500. Over 24 hours the largest cryptocurrency is down about 0.6% and the broader CoinDesk 20 Index some 2%.

President Donald Trump ramped up the trade-war hyperbole on Thursday, threatening to increase import tariffs levied on the EU and Canada if they keep on working to “do economic harm” to the U.S. after announcing a 25% tariff on vehicles and foreign-made auto parts.

The move comes in retaliation for a 10% tariff imposed by the EU on U.S. vehicles and a 15% tariff on various other goods, such as peanut butter and orange juice. Canada also introduced retaliatory tariffs in response to U.S. duties on aluminum and steel.

The U.S. president said that he had a “great relationship” with France’s President Emmanuel Macron and Canada’s Prime Minister Justin Trudeau, adding that he didn’t want to put tariffs on the EU and Canada, but he would do so if necessary.

“We don’t want to do anything that's going to cause economic harm to the United States,” Trump said at the White House.

The president’s announcement came as cryptocurrency markets remained stable, with bitcoin holding steady at around $87,500. Over 24 hours the largest cryptocurrency is down about 0.6% and the broader CoinDesk 20 Index some 2%.

Cryptocurrency prices are being influenced not only by macroeconomic factors, but also by the forthcoming expiry of around $15 billion worth of BTC and ETH options contracts on Friday. The uncertainty has stalled BTC’s price rally, even after video-games retailer GameStop moved to raise $1.3 billion to accumulate the cryptocurrency.

Despite the threat of increased tariffs, the U.S. House of Representatives has released a bill that’s set to help reduce systemic risks associated with stablecoin usage. Blockchain development is also progressing steadily, with Ethereum’s final Pectra test going live on the Hoodi network.

Moreover, the U.S. Senate Banking Committee will today hold a hearing on the nomination of Paul Atkins — who holds up to $6 million in crypto-related assets — as the Chair of the Securities and Exchange Commission. Stay tuned!

What to Watch

* Token Events

* 12:00 AM (ET): Optimism (OP) token unlocks.

* 5:00 AM (ET): Kava (KAVA) introduces a new DeFi product.

* 11:00 AM (ET): Aptos (APT) token unlocks.

* Conferences

* Ongoing: FIGM (France, Israel, Germany, Monaco) cybersecurity and defense technology conference.

* Today - Thursday: FIGM (France, Israel, Germany, Monaco) cybersecurity and defense technology conference continues.

* Token Talk

* Economists warn that a U.S. default on its debt could have wideranging consequences for the global economy.

* Derivatives Positioning

* As of Thursday, around $15 billion in BTC and ETH options contracts are set to expire.

* Market Movements:

* The cryptocurrency market is showing signs of stability despite the ongoing trade tensions.

* Bitcoin price hovers at around $87,500 as the largest cryptocurrency falls 0.6% over 24 hours.

* The broader CoinDesk 20 Index also slid 2% over 24 hours.

* Bitcoin Stats:

* Bitcoin has slid about 10% over the past seven days.

* The cryptocurrency is down 64% from its all-time high of $208,000, reached in November 2021.

* Bitcoin has slid around 50% from its 2022 peak, reached in early January.

* Technical Analysis

* A break below the 200-week moving average could open the door for further losses, according to technical analysts.

* Crypto Equities

* Shares of crypto exchange Coinbase (NASDAQ:COIN) slid around 4%.

* Shares of blockchain software firm Block (NYSE:SQ) dropped around 3%.

* Shares of crypto-focused bank Galaxy Digital (NYSE:BRZL) slid around 2%.

* ETF Flows

* The price of Bitcoin slid slightly after the U.S. House of Representatives released a bill that’s set to help reduce systemic risks associated with stablecoin usage.

* The bill, part of a broader effort to regulate cryptocurrencies, would create a new category of national stablecoins that would be backed 1:1 by U.S. dollars.

* Stablecoins, cryptocurrencies designed to maintain a stable value, have become increasingly popular in recent years.

* Spot BTC ETFs:

* The world’s largest cryptocurrency exchange, Binance, is reportedly planning to launch its own spot bitcoin exchange-traded funds in the U.S.

* The move comes after the