Another relatively calm day was experienced by the crypto market on Tuesday, despite widespread pessimism about the economic impact of the Trump administration’s tariffs.
Bitcoin (BTC) increased by 1% in the last 24 hours, trading at nearly $95,400 and nearing $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, excluding stablecoins, exchange coins, and memecoins — rose by 1.1%, with Bitcoin Cash (BCH) outperforming the rest of the index by surging 6.3%.
On Tuesday, crypto stocks performed fairly muted, with Coinbase (COIN) and Strategy (MSTR) rising by 0.9% and 3.3%, respectively. Janover (JNVR) continued to benefit from its SOL accumulation strategy, with a further increase of 16%.
The recovery from the early April tariff-induced panic continued in the stock market, with the S&P 500 and Nasdaq each seeing an increase of 0.55%.
Some observers believe the market’s performance seems disconnected from the wave of economic data showing that U.S. economic activity is slowing due to the tariff policies enacted by the White House.
A Conference Board survey reported consumer confidence at its lowest level since May 2020, while it recorded the consumer outlook at its lowest point since 2011. Meanwhile, the JOLTS survey showed that job openings had fallen to 7.19 million in March, compared to the expected 7.5 million.
In fresh tariff news, Secretary of Commerce Howard Lutnick stated today that they reached a trade deal with an unspecified country, although that country’s leaders still need to ratify it.
Caution Cast Over Ongoing Rally
Jeff Park, head of Alpha Strategies at Bitwise, posted on X that the market’s blindness is hard to fathom.
Park said that a Fed cut means nothing if dollar weaponization causes the global community to permanently impair U.S. creditworthiness, referring to recent speculation about whether the U.S. central bank will have to lower rates to counter Trump’s tariffs.
That’s the mispricing being discussed here. The myopic focus on whether [we] will get 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 the cost of capital globally will rise.
He added :
