The emergence of the United States’ first “Bitcoin President” has coincided with a major downturn in the crypto market. Proponents of cryptocurrency and related firms had hoped for pro-crypto policies under President Donald Trump, but the situation has taken an unexpected turn. Although some initial progress was made, such as on the stablecoin bill and the creation of a Strategic Bitcoin Reserve, recent announcements on tariffs by Trump have significantly impacted the crypto market.
Bitcoin and altcoins, once viewed as potential hedges against global market crashes, have plunged alongside traditional currencies and equities. Trump’s new tariffs appear to have erased Bitcoin’s status as “digital gold,” leaving traders to reconsider the role of cryptocurrencies during market downturns.
Crypto Advocates Face Disappointment
Trump’s actions in office, particularly his tariff decisions, have led to a ripple effect across the global economy. As a result, Bitcoin has faced multiple flash crashes, with its price dropping to a new cycle low of $74,500 on Monday. Although Bitcoin made a swift recovery and consolidated under the $80,000 mark on Tuesday, the volatility continues.
For many Bitcoin traders and holders, this latest crash represents a painful setback. The support from the crypto community during Trump’s campaign, which had hoped for more crypto-friendly regulations, now seems to have been in vain. Despite the rapid recovery from Monday’s low, market conditions remain uncertain as Bitcoin struggles to regain momentum.
The Crypto Market’s $300 Billion Loss
Monday’s crypto market crash wiped out nearly $300 billion in market capitalization. However, not all tokens were affected equally. Several categories of tokens managed to hold their ground, including liquid staking derivatives finance (LSDFi), top payment solution coins, and Bittensor ecosystem tokens. These categories showed resilience despite the broader market downturn.
Pendle (PENDLE), the native token of the Pendle Finance ecosystem, showed strong performance despite the market-wide crash. PENDLE holders receive incentives and governance rights and can earn rewards through liquidity provision. The token has formed higher highs and higher lows since mid-March, with an 18% potential gain to test resistance at $3.377. Momentum indicators, such as the RSI (relative strength index), support this bullish outlook.
Telcoin (TEL), focused on enabling mobile payment solutions, has also been consolidating. TEL has held steady just below resistance at $0.005363 for the past week, signaling potential for an 18% rally if the token can break through this barrier. Momentum indicators like the RSI and MACD suggest a reversal is on the horizon, offering potential for upward movement.
Bittensor (TAO), a token supporting subnets for AI protocols, has been consolidating under resistance at $284. With RSI sloping upward and MACD showing green histogram bars, TAO could see an 18% rally to test resistance at $245.50, or alternatively, it could find support at $167.80 in the event of a correction.
Bitcoin’s Struggle for Stability
Bitcoin has been consolidating below key support levels, notably around the $85,500 mark. On the daily time frame, Bitcoin’s momentum indicators signal a potential for further decline, with the cryptocurrency hovering near the $80,000 level. If BTC drops further, it could test support at $76,900, a 2.69% decrease from current levels. On the other hand, a price increase of 4% could bring Bitcoin closer to resistance at $82,379, marking the first hurdle in its attempt to reclaim the $85,000 level.
The Prospects for Altcoin Season
The notion of an “altcoin season,” a period in which altcoins outperform Bitcoin, seems increasingly distant in the current market cycle. The altcoin season index, which tracks whether altcoins are outperforming Bitcoin over a 90-day period, dropped significantly. The index, which stood at 65 on March 65, has now fallen to 33 as traders process the impact of Trump’s tariff decisions and the broader market conditions.
Typically, an altcoin season occurs when capital rotates from Bitcoin to altcoins, driving up the value of other tokens. However, with Bitcoin struggling to regain investor confidence as a hedge against market uncertainty, it appears that this cycle may not materialize as expected. Traders will likely have to wait longer for the usual rotation to altcoins, especially in the face of ongoing tariff wars and global economic instability.
Conclusion
The crypto market, once considered a safe haven for investors during times of global uncertainty, faces a challenging period under President Trump’s policies. While initial hopes for pro-crypto regulations have been dampened by recent tariff announcements, certain tokens, such as PENDLE, TEL, and TAO, have shown resilience amid the broader market downturn. Bitcoin, however, continues to struggle with volatility, and the possibility of an altcoin season seems increasingly unlikely in the near future. Investors may need to brace for more uncertainty as the global economic landscape evolves.
