{"id":23910,"date":"2025-05-12T19:48:44","date_gmt":"2025-05-12T16:48:44","guid":{"rendered":"https:\/\/forklog.com\/en\/how-trade-wars-are-shaping-bitcoin-and-ethereum\/"},"modified":"2025-05-12T19:48:44","modified_gmt":"2025-05-12T16:48:44","slug":"how-trade-wars-are-shaping-bitcoin-and-ethereum","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/how-trade-wars-are-shaping-bitcoin-and-ethereum\/","title":{"rendered":"How trade wars are shaping bitcoin and Ethereum"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>In a conversation with ForkLog, experts discussed the consequences of US trade wars for the crypto market and outlined its likely trajectory.<\/li>\n<li>Ethereum has outpaced bitcoin by growth rate, yet remains undervalued.<\/li>\n<\/ul>\n<\/div>\n<p>Investors are returning to risk assets, particularly the technology sector, which had been under pressure from trade disputes. So said trader and Coen+ Telegram channel author Vladimir Koen in comments to ForkLog.<\/p>\n<p>He noted that all markets reacted positively to news of <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-tests-105000-amid-us-china-trade-deal\">an agreement between the US and China<\/a>: <\/p>\n<ul class=\"wp-block-list\">\n<li>Nasdaq 100 futures added 3.9% in 24 hours;<\/li>\n<li>S&amp;P 500 futures rose 3%;<\/li>\n<li><span data-descr=\"US Dollar Index\" class=\"old_tooltip\">DXY<\/span> reached 101.8 \u2014 the highest since April 10;<\/li>\n<li>bitcoin tested $105,000.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIt is important to understand: the agreement is simply a 90-day moratorium. The trade wars are not over, and for many reasons it is beneficial for [US President Donald] Trump to continue them. He clearly, together with his closest circle, is making good profit from his announcements, because before the rally in early May hedge funds and large institutional investors were quite actively getting rid of bitcoin,\u00bb Koen noted.<\/p>\n<\/blockquote>\n<p>In the speaker\u2019s view, tariffs have a long-term negative impact on the economy and inflation, and they also slow the US central bank\u2019s rate cuts. At the same time, the <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-tests-97000-amid-us-china-trade-talks\">pump<\/a> that occurred on May 8 \u201cclearly looks like insider trading,\u201d because large purchases began before the announcement of talks between the US and China.<\/p>\n<p>He added that the United States made very large concessions, since cutting tariffs from 200% to 10% is \u201ca bow\u201d to China. Scrapping tariffs on all electronics is not in America\u2019s interest, but Trump needs to maintain voter support. In his first 100 days in office, the president set a record low approval rating among re-elected presidents.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThe US trade deficit with respect to China is so large that Trump will not be able to eliminate it over the next three years. He set such a task in his previous term, but did not fulfill it. Trade wars will continue to cause market volatility. This suits the president. But a gradual decline is inevitable, since tariffs hit consumers,\u00bb he stressed.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>Prospects for digital gold<\/strong><\/h2>\n<p>Given the easing of tariff tensions, trader Artem Zvezdin forecasts bitcoin rising to $120,000\u2013130,000. However, it will struggle to break higher because of the geopolitical backdrop elsewhere:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThe issue of Ukraine and the corresponding crisis is coming to the fore. It is not particularly clear how it will end.\u00bb<\/p>\n<\/blockquote>\n<p>Koen also considers a new all-time high for bitcoin in May possible.<\/p>\n<p>The main drivers of the first cryptocurrency\u2019s growth remain inflows into US spot exchange-traded funds (ETFs) and buying by Strategy.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abA surge of bitcoin into the $108,000\u2013110,000 range is quite realistic if Michael Saylor continues buying at the same pace. But a new stage of growth and the achievement of an all-time high will likely come after the Federal Reserve cuts rates \u2014 in June or July. Looking ahead, I expect that bitcoin could well reach $150,000 this year. Possibly even higher; it depends on how active institutional investors will be,\u00bb the expert explained.<\/p>\n<\/blockquote>\n<p>According to Koen, the growth of digital assets is restrained by the <a href=\"https:\/\/u1f987.com\/en\/news\/stablecoin-bill-stumbles-in-key-us-senate-vote\">delay<\/a> in adopting crypto legislation in the US. If a stablecoin bill is passed soon, it would give the market a serious boost.<\/p>\n<p>Crypto-friendly rules would attract large players, who would be more willing to invest in risk assets. In a positive scenario, digital gold could jump to $180,000, the trader added.<\/p>\n<p>However, Zvezdin warned that the main wave of hype has subsided and capital from interested participants is already in the market. Therefore, a push above $130,000 will be difficult for bitcoin.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abTo those who expect bitcoin to jump to $300,000\u2013400,000 in this cycle, I would recommend looking at the capitalization and doing the math. All the money in the world cannot be in cryptocurrency,\u00bb the specialist said.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>Reasons for Ethereum\u2019s rise<\/strong><\/h2>\n<p>Over the past seven days, the second-largest cryptocurrency has gained almost 40%, reaching $2,500. The asset outpaced bitcoin, which rose 9% over the week.<\/p>\n<p>Koen noted a strong support level for ETH at $2,400\u20132,500 and forecast further growth.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThis spring we observed the highest level of negative sentiment toward Ethereum since 2018. We did not see such negativity even in the bear market of 2022. This is because people ended up underwater, and many hodlers had been holding coins since 2021. A huge wave of negativity also came from new investors who entered the market and began buying the asset following Trump\u2019s company, World Liberty Finance,\u00bb the trader explained.<\/p>\n<\/blockquote>\n<p>The last weekly candle at +45% delivered the biggest increase since 2020. Now Ethereum looks undervalued compared with bitcoin, Koen said. The <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-activates-major-pectra-upgrade\">Activation<\/a> of the Pectra hard fork served \u201cjust as a trigger.\u201d<\/p>\n<p>The expert named $2,800\u20133,000 as the nearest target for the coin. Potential drivers include the RWA segment, whose capitalization has already exceeded $22 billion, and increased inflows into ETFs.<\/p>\n<p>Zvezdin also noted that Ethereum\u2019s rise was \u201clong overdue.\u201d He linked the positive dynamics to a rotation of funds from the first cryptocurrency into the second.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abA classic altseason occurred. It had been expected by market participants for quite a while, so some investors began reallocating into ETH. Accordingly, the coin rose, as did other assets,\u00bb the speaker added.<\/p>\n<\/blockquote>\n<p>Standard Chartered has urged investors to buy the first cryptocurrency and forecast a rise <a href=\"https:\/\/u1f987.com\/en\/news\/standard-chartered-urges-bitcoin-investment\">to $120,000<\/a> in the fourth quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a conversation with ForkLog, experts discussed the consequences of US trade wars for the crypto market and outlined its likely trajectory. Ethereum has outpaced bitcoin by growth rate, yet remains undervalued. Investors are returning to risk assets, particularly the technology sector, which had been under pressure from trade disputes. So said trader and Coen+ [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,46,1145,1150,1138],"class_list":["post-23910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-ethereum","tag-market-analysis","tag-news-plus","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"38","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/23910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=23910"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/23910\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/23909"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=23910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=23910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=23910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}