Bitcoin (BTC)
$82,215
Price fell to $81,400 at the time of writing, with altcoins experiencing losses nearing 10%. The first quarter has been troubling for traders due to tariff concerns. If the second quarter is similarly affected by tariff retaliations and fears of a global recession, some altcoins may face severe declines. So, what insights does the crypto oracle have regarding this bearish market?
Capo’s Cryptocurrency Predictions
At the time of writing, EU Trade Commissioner Sefcovic stated that “we are prepared for counter measures,” indicating potential retaliation from the EU. This is troubling as such counteractions could worsen the already complicated situation. Trump is expected to retaliate against these measures, which could spiral into a global recession.
Apple has reportedly suffered a $255 billion loss as historical declines hit daily records, and total losses in the U.S. stock markets have surpassed $2 trillion. Capo shared a graph about eight hours ago, stating;
“Crazy price movements. This is why I often avoid leverage. Currently, BTC is fluctuating below and above the $84,000-$85,000 range, struggling to find direction. Indicators maintain a bullish trend in the short term, making further upward movement seem likely. However, we need to see a clean reclaim of $85,000 to confirm this. As long as this occurs, the next target will be the strong resistance range of $92,000 to $98,000.”
What happened next? While U.S. markets continued to decline, BTC dropped to $81,211. The negative scenario indicated by the chart suggests that sustained closures below $81,364 could lead to a further decline to $69,000 or $65,000.
“The same support zone is being retested.”
Will Cryptocurrencies Rise?
Sefcovic is signaling a potential strategy of isolating the U.S. He mentioned that they would diversify trade partners and take necessary actions. Germany and France are pressuring for a joint tariff announcement from the European Union. France calls for targeting technology companies, with Apple, NVIDIA, META, TESLA, and AMAZON all experiencing significant declines. Gold dropped half a point while BTC fell 6.5%.
U.S. oil prices dropped by 6% amid demand reduction expectations. The DXY fell below 101.5, while U.S. two-year yields dropped below 3.7%. Markets are pricing in a definitive rate cut in June due to prevailing recession fears.
In the short term, this panic may not lead to a rise in cryptocurrencies. However, if the anticipation of global monetary easing due to recession is priced in early, we might witness this rise. As U.S. ten-year yields dropped below 4% for the first time since October, liquidity expansion into cryptocurrencies seems unlikely. We are now on the verge of a “historic” major movement.
“Rescue Day brings U.S. tariffs back to levels last seen in 1909. Growth in the U.S. will be slower than expected due to higher tariffs, leading to rising consumer prices and declining corporate profits. The upward pressure of tariffs on goods prices means the Fed will be more cautious about further rate cuts in the near term.” – Fitch Ratings
