Crypto Meltdown...Trump Giveth and Trump Taketh

CryptosRUs

Current Market Situation

The current market is experiencing uncertainty due to the introduction of tariffs by the US on Canada, Mexico, and China. This has led to a decline in crypto and Bitcoin prices.

Tariff Details

  • The US is imposing a 25% tariff on goods from Canada and Mexico, and a 10% tariff on goods from China.
  • The reasoning behind the tariffs is to gain leverage on immigration and drug issues, rather than addressing trade imbalances.

Reactions from Other Countries

  • Canada has retaliated with a 25% tariff on over $100 billion worth of US imports.
  • Mexico is evaluating its response and has not yet taken action.
  • China is also evaluating its response and has not immediately retaliated but may take action in the coming week.

Market Predictions

  • The US market is expected to react negatively when it opens.
  • Bitcoin's price is hovering around $97,000 and is expected to potentially bounce back to around $99,000.
  • Altcoins, especially meme coins, are being sold off heavily due to a lack of loyalty among meme traders.
  • Coins like Solana and XRP have seen significant drops in value.

Long-Term Outlook

  • Despite short-term fears and market downturns, the long-term outlook for Bitcoin and fundamentally strong crypto projects remains positive.
  • The current situation is seen as a distraction, and it's advised to stay strong and accumulate during this period.
  • Bitcoin is expected to form a new high, and American-based crypto projects are still anticipated to do well this year.

Advice

  • Don't panic and consider this as an opportunity to accumulate.
  • It may not be a good week for meme coins, but it's still a good time to dollar-cost average into Bitcoin and strong altcoins.
  • Keep an eye on Layer 1 and Layer 2 projects, AI plays, and DeFi projects as they have potential for growth.