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- Bitcoin was traded over $95,400 on Tuesday, showing resilience despite economic concerns.
- US stocks (S&P 500, NASDAQ +0.55%) also continued to recover from tariff horrors in early April.
- Since May 2020, consumer trust has been at the lowest. Jorz job offers missed the estimate.
The cryptocurrency market showed significant stability on Tuesday. This appears to be unsurprising by increasing pessimism about the economic impact of the Trump administration’s tariff policy.
Bitcoin was bordered higher and revived ground above $95,000, but traditional stock markets continued to recover, prompting some analysts to question whether the market is priced accurately in underlying economic risks.
Despite warning signs, the market marches higher
Bitcoin (BTC) has continued its recent positive momentum, trading nearly $95,400, winning around 1% in the previous 24 hours.
The move has brought a significant distance to a significant $96,000 level that was last seen in late February.
The broader crypto market showed similar resilience, with the Coindesk 20 index moving forward by 1.1%.
Bitcoin Cash (BCH) stood out with a substantial 6.3% spike.
Crypto stocks continued to take part in a strong run (+16%) linked to Solana Acumulation Strategy, although modest. Coinbase (Coin) increased by 0.9%, MicroStrategy (MSTR) increased by 3.3%, and Janover (JNVR) also linked to Solana Acumulation Strategy.
This relatively calm in digital assets reflects the strength of traditional stocks.
Both the S&P 500 and Nasdaq Composite recorded a 0.55% profit, expanding the recovery from tariff-induced panic seen in April.
Economic data draws calm pictures
However, this market buoyancy has been unfolding against an increasingly concerned background on economic indicators, suggesting a potential slowdown that may be related to the White House tariff strategy.
The conference committee reported that US consumer confidence has plummeted to its lowest level since May 2020, and that the future-looking consumer outlook component has reached its weakest point since 2011.
At the same time, the latest Jobs and Labor Turnover Survey (JOLTS) shows a cooling labor market with job openings falling to 7.19 million in March, well below the expected 7.5 million.
In addition to the complex policy environment, Commerce Howard Lutnick said on Tuesday that trade contracts have been reached with an unspecified country, but he said ratification is still needed and that the broader tariff situation would not be immediately clear.
Analysts warn market “blindness” to basic risks
This obvious disconnect between market performance and weakening of economic data has raised a red flag among some observers.
Jeff Park, head of Alpha Strategies at digital asset investment firm Bitwise, has expressed strong concern about the market perspective.
“It’s hard to guess how blind the market is,” Park was posted on social media platform X (formerly Twitter).
He argued that the emphasis on potential Federal Reserve rate reductions in the market would miss out on bigger and more fundamental risks.
“The Fed cut means nothing if the US creditworthiness is permanently eroding by the global community, just as the dollar’s weaponization has occurred,” Park elaborated, linking potential damages to Trump administration policies that leverage the dollar’s global role.
He suggested that speculation about whether the Fed could be forced to lower fees to offset the impact of tariffs was misguided.
“That’s the mispricing we’re talking about here,” he continued.
Whether or not to focus on myopia [we] Getting Fed cuts in May/June is completely irrelevant if you know that the concept of risk-free things is permanently fundamentally challenged.
Park’s comments highlight deeper concerns. Markets may be concentrated on short-term aspirations (such as potential interest rate reductions), ignoring the potentially serious, long-term structural damage to the US financial position and the global costs of capital caused by ongoing policy uncertainty and aggressive trade tactics.
While Bitcoin has held firmly near recent highs, there is a continuing debate as to whether the strength of the market today reflects true resilience or a dangerous neglect of fundamental economic headwinds.
