Bitcoin, Ethereum, and Solana Price Surge
Cryptocurrency Bitcoin Climbs amid Moderated China Trade Speculations from Treasury's Bessent
Here's the latest on the crypto market as of Wednesday afternoon:
- Bitcoin has been cruising above $93,000 amidst the trade tariff chaos.
- Ethereum has outpaced Solana with a 5.3% rise to $1,780.
- Solana follows closely behind, surging by 4% to hit $150.
Despite the Trump Administration's flip-flopping on trade tariffs, the crypto market remained unfazed.
U.S. Treasury Secretary Steven Mnuchin confirmed that Trump hasn't made a one-sided offer to reduce tariffs on China, which can reach up to 245% on certain goods. He also mentioned that it could take years to hammer out a deal.
Yesterday, Mnuchin seemed to express optimism about a soon-to-be-negotiated deal with China and claimed that Trump's trade war wasn't sustainable for either side. However, today from the Oval Office, Trump expressed his belief that tariffs on China will decrease significantly, without specifying the new rates.
While the ongoing negotiations between the Trump Administration and China have kept investors on edge, recent remarks have brought some relief. Aurelie Barthere, principal research analyst at on-chain analytics platform Nansen, stated that while uncertainty remains, markets had been waiting for the slightest signal that negotiations were back on track.
On Wall Street, the S&P 500 and the tech-heavy Nasdaq jumped 1.8% and 2.6% respectively. Notable movers included Strategy's stock price, which climbed 1%, and Coinbase, which increased by 2.6%, following a positive buy rating on initiated coverage from investment banking firm Benchmark.
While spot Bitcoin exchange-traded funds (ETFs) have traditionally seen outflows during tariff-related trade drama, they recently experienced their strongest daily intake since mid-November. Investors poured $913 million into spot Bitcoin ETFs, led by the ARK 21Shares Bitcoin ETF (ARKB), which pulled in $267 million.
Though the provided search results don't offer direct information about the trade tariffs’ impact on Bitcoin, Ethereum, and Solana prices, there are some intriguing insights. For instance, Bitcoin, Ethereum, and Solana show moderate positive correlations (+0.4) with the Nasdaq-100, suggesting they may be influenced by broader macroeconomic trends affecting risk assets. Solana exhibits a higher volatility rate (nearly double Bitcoin's) due to its reactive nature to market sentiment shifts. Analysts also project short-term downward momentum for Bitcoin but anticipate rebounding to six-figure levels later in 2025. However, for tariff-specific analysis, monitoring real-time liquidity shifts and institutional positioning data would be necessary.
Edited by James Rubin
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- Stablecoins, such as cryptocurrencies tied to the US dollar, could potentially provide a more secure haven for investors during periods of trade tariff chaos, given bitcoin's moderate positive correlation with the Nasdaq-100.
- Bitcoin, Ethereum, and Solana have been reportedly hovering above significant levels, with bitcoin cruising above $93,000, Ethereum at $1,780, and Solana at $150.
- Amidst the ongoing trade negotiations between the Trump Administration and China, cryptocurrency investing has added another layer of complexity, with the cryptocurrency market remaining relatively unfazed.
- Yesterday, US Treasury Secretary Steven Mnuchin reportedly expressed optimism about a soon-to-be-negotiated deal with China, but today, Trump suggested that tariffs on China will decrease significantly without specifying the new rates.
- Despite the lingering uncertainty surrounding trade tariffs and negotiations, some analysts are projecting short-term downward momentum for Bitcoin but anticipate rebounding to six-figure levels later in 2025.
- Ethereum has outpaced Solana in terms of growth, gaining 5.3% to reach $1,780, while Solana follows closely behind with a 4% surge to hit $150.
- Most recently, investors have added $913 million into spot Bitcoin ETFs, with the ARK 21Shares Bitcoin ETF (ARKB) leading the way, pulling in $267 million.
- As technology continues to advance and the crypto market matures, the intricacies of how trade tariffs and macroeconomic trends affect the crypto market, particularly Bitcoin, Ethereum, and Solana, are becoming increasingly important for investors to understand and monitor.
