Bitcoin rises to $87.3k but faces resistance amid tariff concerns
The price of bitcoin rose slightly in range-bound trading on Wednesday, but investors remain cautious due to uncertainty surrounding new trade tariffs in the US. Some fear that the current rise could prove to be a bull trap.
The world's largest cryptocurrency reached $87,284.50, but further gains are being held back by resistance.
Investors are waiting for clarity on tariffs
The market is closely watching the Donald Trump administration's plans to impose retaliatory tariffs starting April 2. Initially, broad measures were expected, but the latest data points to a more targeted approach - focusing on countries with large trade imbalances with the US.
The crypto market remains sensitive to geopolitics, with bitcoin jumping to 88500 earlier in the week on rumors of tariff easing. However, analysts warn that serious resistance awaits it around 90,000, and the current growth could be replaced by a sharp pullback.
“Bull trap” is a situation where a brief rise in price creates the illusion of the beginning of an uptrend, followed by a sharp fall, leading to losses for careless buyers.
GameStop adds bitcoin to reserves - shares up 8%
GameStop's (NYSE: GME) board of directors on Tuesday approved adding bitcoin to its corporate reserves. The company can now allocate a portion of its funds or future funding income to the cryptocurrency, though no exact limit was specified.
The decision puts GameStop on par with companies like MicroStrategy (NASDAQ: MSTR), which actively utilize bitcoin in their financial strategy.
The news coincided with the release of its Q4 financials: revenue fell to 1.283 billion (from 1.794 billion a year earlier), but net income rose to $131.3 million thanks to cost cutting. Shares of the company, known as the “first meme asset,” jumped 8% in after-hours trading.
Altcoins: Polygon is leading the way, while the rest are sideways
Amid general caution, most altcoins are showing weak movements:
Ethereum (+0.2%, $2,052)
XRP (+0.8%, $2.4485)
Solana (+1.7%)
Cardano (+0.4%)
Polygon (+7.8%) is the clear leader of the day.
Among meme tokens:
Dogecoin (+3.5%)
$TRUMP (+0.7%).
The market continues to balance between hopes for growth and risks of correction.