Bitcoin Faces Cautious Optimism Amid Tariff Pause
While President Trump’s tariff pause offered some relief, crypto markets remain cautious. Traders are hesitant to fully invest in risk assets, according to Bitfinex analysts.
Bitcoin (BTC) has been trading sideways, adn ETF flows are subdued. The 90-day tariff pause is seen as a temporary reprieve, not a long-term solution.This keeps investors wary of riskier assets like Bitcoin.
“Trump’s tariff pause is just a delay, not a resolution.Investors know tariff threats are still possible, so they won’t shift aggressively toward risk-on just yet,” Bitfinex analysts explained.
Bitcoin ETF flows continue to disappoint. As of april 10, ETFs recorded their sixth consecutive day of negative flows, totaling $149 million. The largest outflow was on April 8, with $326 million exiting.
In this environment, crypto assets may underperform equities until a new catalyst emerges. Possible drivers include a dovish pivot from the U.S. Federal Reserve or improved liquidity in crypto markets.
“Crypto could underperform equities until we see concrete signals, like a shift in Fed tone or better liquidity conditions,” Bitfinex analysts noted.
Trump’s pressure on Fed Chair Jerome Powell to reduce interest rates could bring relief. However, rising inflation fears may keep the Fed on its current course unless there’s a leadership change. A recent Supreme Court decision allows Trump to temporarily oust officials of autonomous agencies, raising questions about Powell’s future.
