Past markets and US tariff responses could be from the past, where traders are embracing new economic data and rate cuts in the coming months.
Crypto Markets saw high volatility in preparation for the tariff announcement on Wednesday and Thursday. President Donald Trump has charged a minimum of 10% fees for all imports into the country.
Major Token Bitcoin (BTC), Ether (ETH), Solana’s SOL, XRP (XRP) and others zoomed ahead of their speech, causing global markets to fall, reversing all profits from the beginning of the week.
The market then rose on Friday morning, with BTC rising above $83,100, ETH rising above $1,800 and XRP, SOL and ADA rising above 2%.
Prior to Trump’s speech, investors suggested a growing intention to move and sell more Bitcoin, ETH and XRP into exchanges, following the encrypted memo shared with Koindsk on Thursday. Bitcoin transactions surged to up to 2,500 BTC per block soon after Trump began speaking.
In the US, Coinbase also saw an increase in Bitcoin deposits, particularly from large holders.
Similarly, ETH has surged to an hourly peak of around 80,000 ETH. The move to XRP jumped from less than 10 million XRP per hour to 130 million in an hour throughout most of the previous day.
These rising influx of exchanges reflect investors’ willingness amid rising economic uncertainty, Cryptoquant said demand for Bitcoin and ETH fell in the permanent futures market as traders closed their long positions to earn profits.
But headwinds are behind it, and the new economic dataset released later Friday could provide a driving force for short-term relief in the market.
Attention is being paid to the non-farm salary report scheduled for Friday’s release. Monthly US economic indicators released by the Bureau of Labor Statistics show changes in employment and provide insights into economic health, reflecting job creation, unemployment trends and wage growth.
“Investors are prepared for signs of softness in the US labor market,” Singapore-based QCP Capital said in a telegram broadcast later Friday. “Widely weaker than expected prints will bolster further Fed rate cuts this year as policymakers try to ease a slowing economy.”
Data shows the market is priced at four interest rate cuts in 2025. It is 0.25 bps for June, July, September and December respectively. Interest rate cuts occur when central banks like the Federal Reserve stimulate economic growth by lowering interest rates and lowering borrowing.
Bitcoin and the wider markets tend to respond positively to rate reductions as they reduce the appeal of traditional investments like bonds and direct investors towards alternatives like BTC. Furthermore, weak dollars can increase the value of BTC as a hedge against inflation or currency devaluation.
QCP Capital said it continues to observe an increase in volatility in the short term, with more buyers for downside protection.
“That being said, now that light and risk assets are almost oversold, the setting could be set for short-term bounce,” the fund said.
