Key Takeaways
- After somewhat stabilizing mid-week, crypto markets turned bearish again late Thursday.
- The latest retreat reflects ongoing anxiety over trade and credit health.
- However, Trump’s suggestion that tariffs may not be set in stone offered a glimmer of hope on Friday.
It has been a devastating week for crypto markets, with every major token in the red over the past seven days.
Donald Trump instigated the downturn by threatening to impose 100% tariffs on Chinese imports. But by the same token, he has the power to end what he started.
A Light at the End of the Tunnel?
According to The Kobeissi Letter, which is known for reporting breaking news before major outlets, when asked whether his additional tariffs would stand on Friday, Trump responded negatively.
At the time of writing, crypto markets were showing signs of recovery, with Bitcoin up 0.84% over the course of an hour.
While it’s too early to call a rebound, even small gains offer a glimmer of hope in the wake of a market-wide drawback that started late Thursday.
Credit Fears Spill Over Into Crypto Markets
The bearish turn likely reflects a spillover from the stock market, where tariff concerns have been compounded by Wall Street anxiety about credit health.
Catalysts for the latest selloff include signs of stress among regional U.S. banks.
On Wednesday, Zions Bancorp disclosed in a regulatory filing that it would book a $50 million loss this quarter due to a bad loan.
The following day, Western Alliance reported that it is seeking to recover $100 million after it was exposed to fraud.
“The sudden outbreak of fears about the U.S. banking system caught equities on the hop, but the selling has taken crypto down hard, completely reversing any gains made this week,” IG’s chief market analyst, Chris Beauchamp, observed to CCN.
“We haven’t witnessed a sustained, broad-based selloff like this in markets for months, but while fears about a full-blown banking crisis are likely overdone, it looks like the selling will continue for some time yet,” he warned.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
