On April 16, the White House raised tariffs on Chinese goods to 245% , marking what analysts are calling the most intense trade war. This has caused volatility across risk assets, even crypto assets.
Lark Davis, a popular crypto analyst, called this trade war "extreme," highlighting that companies like Nvidia and Boeing are already feeling its negative impact. He called out "the decoupling is real " regarding China's cancellation of Boeing purchases and the $5.5 billion loss Nvidia expects to incur from export bans.
"Nvidia says the U.S. government has banned them from indefinitely selling age 20 chips to China. Nvidia says to come with a $5.5 billion change to Q1 earnings stocks down 5% on the news," said Davis on a livestream .
He stated that while there was a shock to the market in the short-term , the overall crypto ecosystem will benefit from the political shifts, including legislation supporting stablecoins in place and the strategic Bitcoin reserve from the U.S.
"Zoom out," Davis said, referring to Bitcoin's growth in the long haul.
Another analyst, Ali Martinez, agrees that Bitcoin could be set up for a short-term rally. If the asset can break the $86,500 barrier, "that would confirm the potential for a move toward $92,000."
He cautions that the market is still in a "macro downtrend" on a livestream with CoinArk. For example, he noted the death cross between the 50- and 200-day moving averages. Martinez said if support around $81,000 fails, downside targets are $58,000 or the 200-week moving average at $47,000.
At press time, Bitcoin is trading at $85,060.15 , down just 0.26% in the last 24 hours, as per Kraken . The global crypto market cap is $2.65 trillion.
