Bitcoin surges above $95,000, defying pessimism about the impact of US tariffs on the economy, as stocks also gain ground in a market that appears to be ‘blind’ to risks.
The crypto market experienced another relatively calm day on Tuesday, despite widespread pessimism about the impact of the Trump administration’s tariffs on the economy.
Bitcoin (BTC) is up 1% in the last 24 hours, trading at almost $95,400 and within sight of topping $96,000 for the first time since the second half of February. The CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization except for stablecoins, exchange coins and memecoins — rose 1.1%, with Bitcoin Cash (BCH) outshining the rest of the index by surging 6.3%.
Bitcoin's price is determined by supply and demand on cryptocurrency exchanges.
It can be influenced by factors such as market sentiment, regulatory changes, and global economic conditions.
The price of bitcoin has experienced significant fluctuations since its inception in 2009.
In 2017, the price reached an all-time high of $19,666.
On average, the daily trading volume for bitcoin is around $20 billion.
The use of derivatives, such as 'futures contracts' , can also impact the price.
Market Recovery Amid Trade Deal Announcement
Stocks gained ground as well, continuing their recovery from early April’s tariff-induced panic. The S&P 500 and Nasdaq each added 0.55%, showing resilience in the face of economic data suggesting a slowdown in U.S. economic activity.
Consumer confidence came in at its lowest level since May 2020, according to a Conference Board survey, while the consumer outlook hit its lowest point since 2011. Meanwhile, the JOLTS survey indicated that job openings had fallen to 7.19 million in March versus an expected 7.5 million.
Consumer confidence is a measure of consumers' attitudes towards the overall state of the economy.
It's often used as an indicator of future economic activity.
The Conference Board's Consumer Confidence Index (CCI) is a widely followed metric, which surveys households on their expectations for employment, business conditions, and income.
A high CCI score indicates optimism, while a low score suggests pessimism.
Historically, consumer confidence has been closely tied to economic performance, with periods of high confidence often preceding economic growth.
Analyst Warns of ‘Blind’ Market
Some observers have expressed concern about the market’s performance, given the wave of economic data suggesting a slowdown in U.S. economic activity. Jeff Park, head of Alpha Strategies at Bitwise, warned that the market is ‘blind’ to the risks posed by the Trump administration’s tariffs.
‘A Fed cut means nothing if U.S. creditworthiness is permanently impaired by the global community as resulted by dollar weaponization,’ Park said, referring to recent speculation on whether the U.S. central bank will be forced to lower rates to counter the effect of Trump’s tariffs. ‘That’s the mispricing we are talking about here. The myopic focus on whether [we] are getting a fed cut in May/June is completely irrelevant if the notion of the risk-free as we know it is fundamentally challenged forever, which means cost of capital globally is going higher.’
Trade Deal and Its Impact
In fresh tariff news, Secretary of Commerce Howard Lutnick said today that a trade deal had been reached with an unspecified country, though the deal still needed to be ratified with that country’s leaders. The market’s response to this announcement has been muted, suggesting that investors are prioritizing short-term gains over long-term risks.
Howard Lutnik is a renowned American financier, investor, and philanthropist.
He serves as the Chairman of BGC Partners, a global financial services company.
Lutnik has extensive experience in the financial sector, with a career spanning over three decades.
He has been instrumental in shaping the company's growth and expansion into new markets.
In addition to his professional accomplishments, Lutnik is also known for his philanthropic efforts, particularly in the areas of education and healthcare.
Crypto Stocks Perform Moderately
Crypto stocks had fairly muted performances Tuesday, with Coinbase (COIN) and Strategy (MSTR) up 0.9% and 3.3%, respectively. Janover (JNVR), continued to benefit from its SOL accumulation strategy, rising another 16%.
