Bitcoin’s value fluctuated around the $85,000 mark on Monday, with investors scrutinizing the White House’s stance on tariffs and its potential to forestall a recession. As per CoinGecko, the leading cryptocurrency was trading at approximately $84,950, marking a 1.5% increase within the past 24 hours. Concurrently, Ethereum and Solana experienced an uptick of 3.4% and 2.4%, respectively, reaching values of $1,650 and $131.
A survey released on Monday underscored the growing concern over inflation among consumers. Economists are apprehensive that President Donald Trump’s tariffs might fuel further price pressures. According to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations, consumers anticipate an inflation rate of 3.6% a year from now.
The survey findings revealed the highest levels of economic anxiety since April 2020, with 44% of respondents expecting the unemployment rate to be higher a year from now. Notably, among households with annual incomes below $50,000, there was a significant increase in the perceived probability of job loss.
Despite these concerns, Bitcoin’s price experienced a surge over the weekend following the White House’s announcement exempting computer chips and smartphones from “reciprocal” levies. However, the cryptocurrency’s price saw a slight dip on Sunday, in response to Trump’s assertion that “NOBODY is getting ‘off the hook’”, and that other levies would continue to apply to electronics.
Strategy shares experienced a 4.3% rise to $312, while Coinbase shares advanced 1.4% to $178, as reported by Yahoo Finance. Major equity indexes, including the Nasdaq and S&P 500, closed in positive territory, each gaining nearly a percentage point.
Carlos Guzman, a research analyst at crypto market maker GSR, indicated that market participants would be keenly awaiting Federal Reserve Chair Jerome Powell’s address on Wednesday. Guzman said investors are anxious to understand the central bank’s position on the potential of an incoming recession.
The announcement of the ‘Liberation Day’ tariffs had sparked fears of a significant economic downturn, with expectations of as many as four rate cuts this year. However, Trump’s decision to pause most tariffs for 90 days last week alleviated recession concerns and tempered rate cut expectations. Guzman pointed out that market participants are now pricing in more rate cuts than prior to Trump’s ‘Liberation Day’ announcement.
“If the global economic situation deteriorates, we can expect more stimulative policy from central banks,” Guzman suggested. “While this might introduce short-term volatility, it could potentially boost crypto in the medium term.”
Edited by James Rubin.
