According to The Kobeissi Letter, Elon Musk stated that President Trump's proposed tariffs could lead to a recession in the second half of 2025. This warning highlights potential volatility in both traditional and digital asset markets, as historical patterns show risk-off sentiment during economic downturns often leads to increased demand for cryptocurrencies like Bitcoin as alternative investments (source: The Kobeissi Letter, June 5, 2025). Traders should monitor macroeconomic policy shifts and tariff developments closely, as these factors could drive significant price action and liquidity shifts in the crypto market.

According to Cas Abbé, the newly announced US-China trade deal will see the US lowering tariffs on Chinese goods to 30% and China reducing tariffs on US goods to 10%, both for a three-month period (source: Cas Abbé, Twitter, May 12, 2025). This temporary reduction is expected to boost risk-on sentiment in global stock markets and crypto markets, as lower tariffs typically ease cross-border trade tensions. Traders should monitor for increased volatility in Bitcoin, Ethereum, and major altcoins, as well as U.S.-listed Chinese stocks, given the likelihood of improved liquidity and positive momentum tied to short-term relief in trade friction. The crypto market may experience a bullish reaction, particularly among tokens with exposure to Asian trade flows and those listed on exchanges sensitive to macroeconomic policy changes.

According to Crypto Rover, expectations for rate cuts, renewed quantitative easing, and increased money printing are positioning 2025 as a pivotal year for the crypto market. Traders should monitor central bank policies closely, as historical data shows that lower interest rates and expanded liquidity often drive capital into digital assets like Bitcoin and Ethereum (source: Crypto Rover on Twitter, April 26, 2025). Anticipated policy shifts may increase crypto market volatility and create upward momentum for major cryptocurrencies, emphasizing the importance of timing entries based on macroeconomic signals.