empty
04.02.2025 11:34 AM
Why crypto market perks up susprisingly quickly

After yesterday's news about the introduction of trade tariffs by the White House, the total volume of liquidations in the cryptocurrency market exceeded $2 billion. However, shortly after, as reports emerged that tariffs on Mexico and Canada would be postponed for one month, Bitcoin and Ethereum quickly regained their positions—though Ethereum had a much harder time doing so.

This image is no longer relevant

Despite the fluctuations triggered by new economic measures, investors are beginning to recognize the resilience of the cryptocurrency market. Bitcoin's recovery was seen as a positive sign by many investors, highlighting its ability to respond swiftly to changes in the investment climate. This underscores Bitcoin's role not only as an asset but also as a hedging instrument. Ethereum, on the other hand, faced greater challenges, with its recovery hindered by liquidity constraints and technical factors.

The situation with trade tariffs serves as a reminder of the deep interconnection between traditional financial markets and cryptocurrencies. Macroeconomic uncertainty is forcing traders to reassess their strategies, which could lead to further volatility in the future. However, for long-term investors, such market behavior presents yet another opportunity to capitalize on high-risk conditions.

Trump's WLFI and Ethereum's struggle

When it comes to Ethereum's difficulties, the Trump-backed project World Liberty Financial (WLFI) provided some support. According to Cointelegraph, the fund purchased 86,000 ETH worth $220,000 yesterday—far below its usual ETH purchases of $10 million per lot. This led to Ethereum's balance doubling within the fund.

Ethereum's sharp decline has been a hot topic in the cryptocurrency community, and World Liberty Financial's actions have only fueled interest in the token. The purchase of 86,000 ETH for $220,000 might seem like a minor transaction in an active market, but its impact on supply and demand dynamics should not be underestimated.

Funding from major players like WLFI creates a positive trend that could encourage other investors to buy Ethereum. Expectations for the token's future are rising, potentially leading to new investments and further price growth. Moreover, the emergence of more direct and large-scale investments in ETH could boost trust in the cryptocurrency.

Bitcoin's long-term outlook amid tariff reversals

Another key issue is the trade tariffs imposed and then temporarily revoked by Trump. According to several experts, this could lead to long-term BTC price growth due to the weakening of the US dollar on global currency markets and a decline in US Treasury bond yields.

This image is no longer relevant

Technical outlook for Bitcoin

Currently, Bitcoin buyers are targeting a return to the $99,500 level, which would open a direct path to $101,200, bringing BTC within reach of $102,600. The furthest target is $103,800, and breaking this level would signal a return to a medium-term bullish market.

In case of a downturn, buyers are expected to step in at $97,900. A move below this area could rapidly push BTC down to $96,500, with $95,600 being the next key level. The furthest support stands at $93,200.

This image is no longer relevant

Technical outlook for Ethereum

Ethereum's firm consolidation above $2,733 opens a direct path to $2,787, with the next target at $2,843. The ultimate goal is the yearly high of $2,889—breaking this level would confirm Ethereum's return to a medium-term bullish market.

If a correction occurs, buyers are expected at $2,665. A move below this zone could push ETH quickly down to $2,609, with the furthest downside target at $2,532.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Another Consolidation Before a Drop

Bitcoin and Ethereum continue their attempts to rise, but each time they face obstacles, suggesting that this is more of a consolidation phase within an ongoing bearish correction rather than

Jakub Novak 12:25 2025-03-14 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 14

Bitcoin and Ethereum are currently consolidating within channels, creating conditions that may lead to further declines. While many experts agree that the lows have already been reached and an unstoppable

Miroslaw Bawulski 08:20 2025-03-14 UTC+2

Technical Analysis of Intraday Price Movement of Uniswap Cryptocurrency, Friday March 14, 2025.

From what is seen on the 4-hour chart of the Uniswap cryptocurrency, although currently still under pressure, is indicated by its price movement moving below the EMA (21) which

Arief Makmur 07:03 2025-03-14 UTC+2

Technical Analysis of Intraday Price Movement of Doge Cryptocurrency, Friday March 14, 2025.

With the appearance of Convergence between the price movement of the Doge cryptocurrency and the Stochastic Oscillator indicator, it gives an indication that in the near future Doge

Arief Makmur 07:03 2025-03-14 UTC+2

Bitcoin and Ethereum Buyers Struggle to Gain Control

Bitcoin continues its recovery after the major sell-off at the beginning of the week. However, yesterday's failure to break the weekly high casts doubt on the short-term bullish outlook

Jakub Novak 10:22 2025-03-13 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 13

Bitcoin and Ethereum are locked within new channels. On the positive side, the intense selling pressure observed at the beginning of the week has subsided. However, there are concerns about

Miroslaw Bawulski 08:05 2025-03-13 UTC+2

Bitcoin Prepares for a Comeback

As Bitcoin and Ether bounce back strongly from their yearly lows, this indicates that the bull market is not finished yet. In this context, Senator Cynthia Lummis has reintroduced

Jakub Novak 23:59 2025-03-12 UTC+2

Bitcoin Depends on Sentiment in the U.S. Stock Market

The cryptocurrency market has seen a slight recovery after another sell-off earlier this week. However, the situation remains tense, and selling pressure could return at any moment

Jakub Novak 10:24 2025-03-12 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 12

Bitcoin and Ethereum have experienced a slight recovery after another sell-off, reaching new yearly lows. The panic seen in both the U.S. stock market and the cryptocurrency market has paused

Miroslaw Bawulski 08:03 2025-03-12 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 11

Bitcoin and Ethereum have both reached new annual lows, mirroring a decline in the U.S. stock market, which has now fallen for the fourth consecutive week. Yesterday, the crypto market

Miroslaw Bawulski 09:03 2025-03-11 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.