BTC, ETH, and XRP Anticipate Near-Term Bounce Amid Rate Cut Expectations
Traders are shifting focus to new economic data and potential rate cuts following high volatility in crypto markets due to U.S. tariffs, with expectations of a short-term bounce for Bitcoin.
- President Trump announced a minimum 10% tariff on imports, causing initial gains in major cryptocurrencies to reverse.
- Bitcoin (BTC) is currently steady above $83,100, while Ethereum (ETH) has retaken $1,800. XRP, Solana (SOL), and Cardano (ADA) have risen over 2%.
- Pre-announcement, there was an increase in BTC, ETH, and XRP transfers to exchanges, indicating a readiness to sell.
- BTC transactions spiked to 2,500 BTC in one block shortly after Trump’s speech. ETH inflows peaked at around 80,000 ETH hourly, and XRP transfers to Binance rose to 130 million in one hour.
- Investor sentiment reflects uncertainty, with decreased demand for BTC and ETH in the futures market as traders took profits.
- The non-farm payroll report will be released today, influencing market reactions based on employment trends and economic health.
- Markets anticipate four Federal Reserve rate cuts in 2025, which could positively impact Bitcoin as lower rates shift investor interest from traditional assets.
- QCP Capital notes elevated volatility and a potential setup for a near-term bounce due to light positioning and oversold risk assets.