Crypto Markets Face Dual Signals: Bitcoin's Bullish Death Cross Amid Geopolitical Tariff Threats
Crypto Markets Face Dual Signals: Bitcoin's Bullish Death Cross Amid Geopolitical Tariff Threats
The cryptocurrency market is currently navigating conflicting signals. While some analysts interpret Bitcoin's recent 'death cross' technical indicator as a surprisingly bullish sign, potentially marking a market bottom and hinting at future upward movement, the broader market is under severe pressure from a proposed US Senate measure. This measure, which could impose tariffs of up to 500% on imports from nations trading with Russia, has already triggered significant liquidations and widespread volatility across major cryptocurrencies, including Bitcoin and leading altcoins. Experts warn of potential further declines, tying the market's sensitivity to global economic uncertainty and central bank policies.
Bitcoin's 'Death Cross' — A Bullish Omen?
Crypto analyst Colin has highlighted a 'death cross' flashing for Bitcoin's price, paradoxically viewing this as a bullish indicator for the flagship cryptocurrency. This comes despite BTC's recent decline, which had erased its year-to-date gains. Colin suggests that this death cross, occurring as BTC touches the lower boundary of its megaphone pattern, often signals market bottoms and sets up for an upward move in the short term. He also pointed to the Federal Reserve's potential end to quantitative tightening (QT) by December, alongside possible rate cuts, as additional bullish catalysts expected to inject liquidity and spark higher prices.
Another analyst, Benjamin Cowen, corroborated the Bitcoin death cross, noting that past occurrences have often marked local lows. However, he cautioned that such rallies fail if the overall bull market is over. Cowen indicated that a bounce for Bitcoin, if the cycle is ongoing, should commence within the next week, otherwise, another price dump might precede a larger rally. Historically, a death cross in April this year was followed by a 22% gain for Bitcoin.
Geopolitical Tariffs Threaten Crypto Stability
In stark contrast, the crypto market is trembling under the shadow of a proposed US Senate measure backed by former President Donald Trump. This bill would empower the US to impose tariffs as high as 500% on imports from countries continuing to purchase Russian energy. Targeting major buyers like India and China, the proposal is intended to squeeze Russia's export revenues but has sent shockwaves through global markets.
Immediate reactions included crypto traders moving to exits, causing nearly $620 million in liquidations within 24 hours, including a massive $30 million BTC-USD order. Major altcoins such as XRP, Solana, and Cardano experienced sharp swings, and Ethereum dropped towards the $3,000 mark. Bitcoin itself took a 1% hit, having already lost close to 10% from its recent all-time high of $126,000. Analysts warn that such punitive tariffs could trigger severe panic selling, potentially decreasing Bitcoin and altcoin prices by 10% to 20% due to increased economic uncertainty and the likelihood of central banks holding rates higher for longer in response to potential inflation from disrupted energy flows.