Week of April 8-14, 2025
Jeff Park, an analyst at BitwisePark, stated that Donald Trump’s import tariff policy could lead to higher inflation due to increased debt and liquidity measures intended to stimulate the economy. As a result, Bitcoin (BTC) may become a more attractive asset for long-term value preservation.
The U.S. House Financial Services Committee has approved the STABLE Act, a bill aimed at regulating stablecoins. It will now proceed to the full House for consideration before being presented to the President. The Republican Party is aiming to pass the bill by August 2025.
In another development, the House Banking Committee has nominated Paul Atkins for a second term as SEC Chairman, following the early resignation of Gary Gensler.
Meanwhile, Tether, issuer of USDT, has purchased an additional 8,888 BTC on the last day of Q1 2025, investing a total of $735 million USD. This brings Tether’s total Bitcoin holdings to 100,521 BTC, valued at approximately $8.29 billion USD. The company previously announced in May 2023 that it would allocate 15% of its profits to Bitcoin investments.
The Hong Kong Securities and Futures Commission (SFC) has granted licensed digital asset platforms permission to offer staking services, alongside issuing new guidelines for crypto-related ETFs—a move designed to meet growing investor demand.
Glassnode reports that long-term Bitcoin holders—those holding for 3 to 5 years—continue to stay put, with acquisition prices ranging from $3,600 to $69,000 USD, accumulated over recent years.
Technical Analysis
Bitcoin (BTC) has dropped to a new low but remains above the key support level at $74,000 USD, suggesting the broader uptrend is still intact. If this level fails to hold, a stop-loss is advised. A recovery could target the first resistance at $84,000 USD, which may serve as a short-term profit-taking level in the current volatile environment.
Ethereum (ETH) continues to trend downward, with a potential decline toward $1,400 USD support. The RSI index is in the oversold zone, which could trigger a short-term rebound. The first resistance to watch is $2,000 USD. The current strategy should focus on short-term trades, with profits taken near resistance.
EOS posted a 5.08% return over the past week, with the recovery trend showing signs of continuation. The strategy is to buy on dips, with the first support at $0.6784 USD and resistance at $0.8857 USD as the target for profit-taking.
Cosmos (ATOM) recorded a -1.12% return last week. The short-term trend remains sideways, with support at $3.380 USD and resistance at $5.133 USD. The suggested strategy is to trade within this range.
The crypto market saw a broad correction after Donald Trump’s announcement of import tariffs, which triggered a decline across both equities and digital assets.
At the same time, Non-Farm Payroll (NFP) data came in higher than expected, potentially influencing the Federal Open Market Committee (FOMC) to delay interest rate cuts.
The Federal Reserve Chairman noted that import tariffs could drive up inflation and slow economic growth, making the 2% inflation target harder to reach. The Fed expects the inflationary effects of tariffs to be long-term.
Despite this, the FedWatch Tool shows a 57% probability that the FOMC will reduce interest rates in May 2025, indicating that markets still expect supportive policy actions to calm financial markets.
Although asset prices have declined, Bitcoin and gold have outperformed the broader stock market, with investors possibly viewing Bitcoin as a hedge against inflation and protection from tariff-related disruptions. If the Fed shifts toward easing policies, Bitcoin could see renewed bullish momentum.
The market’s focus this week is on the Consumer Price Index (CPI) data, scheduled for Thursday, April 10. The market expects the figure to come in at 2.6%, down from 2.8% in February. A lower-than-expected reading could boost investor confidence and potentially accelerate rate cuts.
References