Crypto Markets Show Signs of Stabilizing Amid Tariff Fears and Profit-Taking, Long-Term Optimism Holds
Despite recent declines, profit-taking, and renewed concerns over tariffs, traders remain broadly optimistic about the long-term prospects of the crypto market.
Market analysts note that leading cryptocurrencies are beginning to form price floors, even as geopolitical tensions and trade uncertainties continue to cloud the near-term outlook.
Bitcoin (BTC) traded near $105,000 during Monday’s Asian morning session, showing little change over the past 24 hours but down roughly 5% over the previous week.
Other major tokens including Ether (ETH) at $2,523.67, XRP at $2.15, Solana (SOL) at $153.21, Cardano (ADA) at $0.67, and Dogecoin (DOGE) at $0.19 displayed similar patterns, with signs of a local bottom forming near key support levels—potentially setting the stage for intraday rebounds.
“Bitcoin remains around $105K as investors navigate uncertainty surrounding short-term macroeconomic factors,” said Nick Ruck, director at LVRG Research. “Concerns about inflation, tariffs, and the U.S. economy have slowed bullish momentum, while geopolitical risks have prompted some investors to reduce exposure.”
Nonetheless, Ruck emphasized a positive long-term outlook: “The crypto industry continues to see strong institutional and user adoption, which bodes well for future growth.”
Trade tensions remain a key risk factor. On Monday, China accused the U.S. of imposing new discriminatory restrictions on AI chip exports and software sales, promising to take measures to protect its interests. This escalation has heightened market nerves.
“Last weekend’s events underscored how quickly cryptocurrencies can react to even minor escalations in trade hostilities,” said Jeff Mei, COO of BTSE, in a Telegram message to CoinDesk.
Mei advised keeping a close eye on further announcements from China and the U.S., potential developments in the Russia-Ukraine conflict, and several important U.S. economic reports due this week—including trade deficit figures, unemployment data, and Federal Reserve commentary.
“Macro factors are currently driving most market moves, making short-term predictions difficult. Still, it’s encouraging to see large institutions steadily increasing their crypto exposure,” he added.
Meanwhile, investors are diversifying beyond Bitcoin, showing increased interest in tokens like XRP and SOL. As Bitcoin’s price action increasingly mirrors traditional risk assets, some experts say this adds to a cautiously optimistic long-term outlook.
“Trade policy uncertainty is driving capital into high-growth tech stocks, but savvy investors are also diversifying into crypto—especially TradFi-friendly assets like Bitcoin and XRP, where ETF optimism is growing,” said Kathy Qu, research manager at HashKey Cloud.
Qu highlighted that staking and decentralized finance (DeFi) sectors remain bright spots, with real-world asset tokens gaining momentum. She noted that Ethereum ETFs stand to benefit from the SEC’s recent staking exemption, a development expected to boost institutional participation in DeFi.
