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Bitcoin and altcoins look beyond Trump tariffs 2025, all eyes on Fed rate cut decision

Posted on by Audrey

Despite Thursday’s 1000-point decline in the Nasdaq, Bitcoin and other cryptocurrencies are stronger when the Trump tariff concerns are ignored.

Bitcoin and other cryptocurrencies are displaying some resistance despite Thursday’s 1000-point Nasdaq drop, as investors in the cryptocurrency market appear to be ignoring the Trump tariff news. After experiencing significant fluctuation earlier this week, the price of bitcoin is currently down merely 1% to $82,698. Amid the market upheaval caused by Trump, investors will watch the FOMC meeting next month to see if Fed Chair Jerome Powell blinks for rate reduction.

Where is Bitcoin price heading next after Trump tariffs?

Over the previous week, the price of bitcoin has fluctuated greatly, ranging from $82,000 to $89,000. Bitcoin’s price plummeted from $88,000 to $82,000 just as the Trump reciprocal tariffs went into effect on April 2.

However, Bitcoin and the larger cryptocurrency market have recently demonstrated better durability, even though the Nasdaq fell 6% and the S&P 500 fell 5% on Thursday. A significant technical turning point for Bitcoin’s possible market recovery has been identified by cryptocurrency expert Ali Martinez. Martinez claims that regaining the short-term holding realized price level, which is now at $90,570, would be the first obvious indication that Bitcoin is prepared to start its bull run again.

Bitcoin MVRV scaled

Will Fed rate cuts come during May FOMC?

According to the most recent market data, traders are only giving a 25 basis point rate drop at the Federal Open Market Committee (FOMC) meeting on May 7 a 27.1% chance. Given the slim chances, investors probably think the US Federal Reserve won’t change its present course in monetary policy.

Fed Chair Jerome Powell is still being cautious, suggesting that further proof of decreasing inflation could be required before easing starts. Titan of Crypto, a well-known cryptocurrency expert, indicates that the price of Bitcoin must exit the falling wedge formation. “Over the next couple of months, CPI and Core PCE are likely to improve, as Trueflation data shows inflation cooling off significantly”. the analyst said with hope.

Bitcoin falling wedge

Will altcoins recover anytime soon?

Altcoins have had a severe correction since the start of 2025, with Ethereum (ETH), Solana (SOL), and others seeing drops of between 30 and 40 percent. According to some market observers, this may indicate the end of any future corrections. Additionally, they believe that the bottom has been reached and that cryptocurrencies will continue to rise from this point on.

Wimar.X, a cryptocurrency expert, has given the altcoin market an optimistic signal, pointing out that a significant technical crossing has now developed, which usually precedes huge rallies. Similar signs have caused altcoin market rises of 1,000% to 2,000% in previous cycles, according to Wimar.X.

Coinbase pushes XRP futures amid Illinois lawsuit relief

To provide futures contracts for Ripple’s XRP coin, Coinbase submitted an application to the US Commodity Futures Trading Commission (CFTC).

The action follows a favorable development for the US cryptocurrency derivatives market, which reflects changing regulatory relationships in the nation.

Coinbase files for XRP futures trading with CFTC

A filing to self-certify XRP futures has been made by Coinbase Derivatives. It will give market players a controlled, cost-effective way to become exposed to XRP. On April 21, the new contract may go into effect.

According to the official filing, the XRP futures contract would trade under the symbol XRL and be a monthly cash-settled and margined instrument.

Each contract will be paid in US dollars and is worth 10,000 XRP. For this month and the next two months, trading will be open. Trading will be momentarily suspended as a precaution if the spot price of XRP fluctuates by more than 10% in a single hour.

Additionally, the Coinbase Exchange attested to its interactions with other market players including Futures Commission Merchants (FCMs). According to reports, both references endorsed the rollout.

Coinbase is not, however, the first exchange in the US to provide regulated XRP futures. Bitnomial, a Chicago-based company, introduced what it said was the nation’s first XRP futures contract subject to CFTC regulation in March.

However, Coinbase’s audacity follows the CFTC’s relaxation of significant regulatory barriers to trading cryptocurrency futures. This indicated a more accommodative attitude toward the industry, as BeInCrypto observed.

“Pursuant to Commodity Futures Trading Commission (“CFTC” or “Commission”) Regulation 40.2(a), Coinbase Derivatives, LLC (the “Exchange” or “COIN”) hereby submits for self-certification its initial listing of the XRP Futures contract to be offered for trading on the Exchange…,” an excerpt in the filing indicated.

This implies that institutional trust may increase as a result of the commodities regulator’s decision to revoke earlier crypto-related directives. In light of Ripple’s recent regulatory success, this development gives XRP more confidence in its previously controversial status.

The futures contract may also increase the likelihood that the XRP ETF will be approved. It is now in limbo after the SEC recently postponed multiple petitions to construct one.

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XRP ETF approval odds. Source: Polymarket

According to Polymarket data, gamblers anticipate a 74% likelihood for the adoption of XRP ETF in 2025 and a more moderate 34% chance by July 31.

Regulatory and legal developments favor Coinbase

Additionally, this filing’s date coincides with Coinbase’s recent positive regulatory developments. Illinois is reportedly planning to withdraw its case against the exchange for its staking services.

In June 2023, Coinbase was sued by up to ten states, claiming that their staking program amounted to unregistered securities sales.

Illinois is now the fourth state to drop its lawsuit against Coinbase as a result of this recent event. Additionally, on March 13, 27, and 31, respectively, South Carolina, Kentucky, and Vermont dropped their suits.

In Alabama, California, Maryland, New Jersey, Washington, and Wisconsin, the lawsuits are still pending.

The US Securities and Exchange Commission (SEC) decided to drop its federal action against Coinbase in February, which is when these legal retreats took place. According to data, this event signaled a more significant change in the present administration’s regulatory strategy.

“Regulators are losing steam, and Coinbase is stacking quiet courtroom wins. Staking’s future in the US might just be back on track,” a user commented.

As the state moves forward with a Bitcoin strategic reserve bill, Illinois has decided to dismiss its lawsuit. In particular, Illinois State Representative John M. Cabello highlighted Bitcoin’s potential as a decentralized, limited digital asset by introducing House Bill 1844 (HB1844).

“A strategic bitcoin reserve aligns with Illinois’ commitment to fostering innovation in digital assets and providing Illinoisans with enhanced financial security,” the bill read.

Cardano’s new open-source digital identity platform goes live

Veridian, Cardano’s open-source digital identification platform, has been released. It offers a decentralized solution for both people and companies.

Launched on April 3, Veridian allows users to securely maintain their digital identities, giving them total control over their data. The platform addresses the issue of centralized identification systems, which often lead to breaches in data.

Open-source protocols like KERI decentralized IDs and ACDC credentials allow users to safeguard their digital identities without depending on other services.

With various trust layers—security measures based on the Cardano (ADA) blockchain—Veridian can function autonomously. Without the use of middlemen, these aid in ensuring secure, genuine, and verifiable online interactions.

In addition to Veridian, the Veridian Wallet will offer a straightforward mobile application for safely keeping digital login information. By allowing users to manage and verify their credentials, the wallet fosters a trustworthy experience across a range of sectors.

In addition to the Veridian launch, Cardano is making progress in other areas. In an interview on April 31, creator Charles Hoskinson disclosed intentions to include Bitcoin (BTC) into Cardano’s decentralized financial ecosystem.

The network seeks to link Bitcoin with DeFi by utilizing the Aiken programming language, which enables smart contracts to be created on both Cardano and Bitcoin, and the Hydra scaling solution, which speeds up Cardano transactions.

Hoskinson thinks that because of Cardano’s architecture, institutional adoption of Bitcoin-based DeFi solutions will happen in three years.

Cardano has lately seen extreme price fluctuation. The price dropped to around $0.65, a 13% decrease from the previous week. In an April 3 X article, market expert Jonathan Carter stated that although ADA may drop lower to a new support level of about $0.59, it still has the chance to rise and perhaps hit $1.

Cardano may draw in new investors and raise its price as it expands in sectors like digital identification and DeFi.

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