The Collapse of Cryptocurrency is About to Happen? Bitcoin Approaches $85,000 After Trump Suspends Tariffs

The cryptocurrency market has seen a strong boost recently after Donald Trump announced a 90-day pause in imposing tariffs on imports from more than 70 countries. The move brought relief to investors and made a solid comeback in both the cryptocurrency and stock markets. Bitcoin surged by nearly $85,000 and coins like Ethereum, Solana, Flare, and even meme coins like Pepe all surged. The stock market also reacted well. The Nasdaq 100 rose more than 310 points, with major technology stocks like Apple, Microsoft, NVIDIA, and AMD all increasing. Sentiment even improved further when the Trump administration decided not to include smartphones and semiconductors on the tariff list. This is a big issue, especially since the 145% tariff on electronics made in China would make everyday items like the iPhone much more expensive for American buyers. Market Confidence Rises, But Risks Still Remain Trump's decision to suspend tariffs is seen as a sign of flexibility, especially with countries like Japan and South Korea, which has boosted hopes for stable negotiations. This has helped tech stocks rise, and as cryptocurrencies often move with technology, digital assets have also risen to the sky, providing confidence for both short-term traders and long-term holders. But the mood is not entirely calm. Trump has a history of rapidly changing direction, sometimes based on political shifts or media pressure. His sudden reversals, such as removing smartphones from the tariff list after initially targeting them, keep the market in a state of tension, especially in the already volatile crypto market. Potential Impact If Trump Lifts the Moratorium If Trump lifts the 90-day pause and continues to impose strict tariffs, the spillover effects could be very serious. A return to aggressive trade policies could spark new fears of economic recession. In such a scenario, Bitcoin and other cryptocurrencies could quickly lose their recent gains. Technical analysis shows that Bitcoin is still trading below the 50-day moving average, indicating that bearish pressure is still ongoing. If the price drops below the support level of $76,495 from March 11, the price could slide further down to $70,000, dragging the overall market down. Trump's next move could play a crucial role in shaping the short-term direction of the crypto market and stocks, especially as the global market remains sensitive to trade and policy signals. Ray Dalio Warns About Deep Economic Trouble in the Context of Trump Pushing for Tariffs On the other hand, Ray Dalio has sounded the alarm about Donald Trump's heavy tariff-based economic approach, warning that it could lead to something even worse than a recession. Speaking on NBC, the founder of Bridgewater stated that the United States is facing a major incident in the global monetary system, with the risk of international conflict if Trump's policies are mishandled. Dalio, who predicted the 2008 crisis, believes that the current situation is rare and extremely serious. As Bitcoin fluctuates around $85,000, market sentiment remains unstable. While exemptions for smartphones have helped to temporarily alleviate fears, Dalio's warnings add new pressure to an already fragile market.