Bitcoin, Ethereum, XRP, and Solana experienced slight increases in value early Wednesday, although analysts suggest that these cryptocurrencies are still confined within a specific trading range. Data from CoinGecko indicates that the top 15 digital currencies by market capitalization have shown positive movement over the past 24 hours.
Many investors are adopting a cautious approach, anticipating that the U.S. government may extend its August 1 deadline for tariff negotiations, as per insights shared with Decrypt. Bitcoin, Ethereum, XRP, and Solana saw marginal gains on Wednesday, seemingly unfazed by the news of the U.S. re-engaging in trade discussions with several nations. However, analysts caution that these assets are still not exhibiting strong upward momentum. For example, Bitcoin has been trading in a narrow range between $107,000 and $110,000 for several weeks, reflecting a modest increase of 1.5% in the last month, yet it remains close to its historical peak. Ethereum has remained stable around the $2,500 mark, while Solana has hovered near $150 during the same timeframe.
Recent trading activity indicates a sense of optimism among traders and investors. As of Wednesday morning in New York, Bitcoin (BTC), the largest cryptocurrency by market cap, was priced at $109,659, reflecting a 0.7% rise over the previous 24 hours, according to CoinGecko data. In addition, altcoins such as Ethereum, Solana, and XRP recorded gains ranging from 2% to 4% in the last day. Although the total cryptocurrency market has contracted by 3% in that same period—currently valued at $3.45 trillion—it has still experienced a significant 35% increase since early April.
The recent rise in cryptocurrency valuations contrasts sharply with the downward trend seen in April when former President Donald Trump first announced his retaliatory tariffs. While some traders are puzzled by the crypto market’s apparent resilience to Trump’s latest tariff threats, analysts argue that this should not come as a surprise. Investors have shown a reduced reaction to the U.S.’s repeatedly postponed trade negotiation deadlines and are instead taking a more proactive stance in hedging against macroeconomic uncertainties, which has helped maintain elevated digital asset prices despite ongoing economic volatility, as noted by the analysts interviewed by Decrypt.
Trade Talks Continue Amid Tariff Threats
On Monday, President Donald Trump dispatched letters to 14 nations, including Japan, South Korea, and Thailand, outlining his intention to impose steep tariffs. The proposed tax rates, spanning from 25% to 40%, are set to take effect on August 1 unless the deadline is extended. While this announcement has caused concern among U.S. trading partners, cryptocurrency investors appear largely untroubled.
Bret Kenwell, an investment and options analyst at eToro, remarked that traders seem to be confident that Trump will likely extend the negotiation deadline rather than enforce the severe tariffs. This sentiment has even sparked a meme (and meme coin) mocking Trump’s propensity to back down. “If there is a belief that talks will continue or deadlines will be postponed, markets may continue to largely ignore the news,” Kenwell added. He further stated that any dips in cryptocurrency values “are likely to be seen as buying opportunities by investors,” potentially pushing prices back within their existing range.
Moreover, crypto traders have already navigated multiple periods of uncertainty due to Trump’s fluctuating trade negotiations, which has fortified their conviction to hold their assets during significant macroeconomic events. “Traders have observed a complete recovery in risk assets, which has alleviated fears related to tariff shocks,” stated Greg Magadini, Director of Derivatives at Amberdata.
Additionally, investors are increasingly hedging against macroeconomic uncertainties related to U.S. tariff negotiations, particularly through options trading, as explained by Magadini. Options are contracts that provide investors the right to buy or sell an asset at a predetermined price, without necessarily obligating them to execute that transaction. Over the past seven months, institutional investors have been focusing on options for BlackRock’s iShares Bitcoin Trust ETF (IBIT), the largest Bitcoin ETF by total inflows. Magadini noted that investors are hedging their bets by purchasing IBIT, selling covered calls for income, and then acquiring protective puts to limit risks.
He also pointed out that the broader cryptocurrency market has become less vulnerable to extreme price fluctuations instigated by panic selling as it has expanded under Trump’s administration. The rationale is that a larger market requires a higher trading volume to induce significant price movements.
