Impacted by the tariff war, the cryptocurrency market plummeted earlier this week, with Bit dropping to a low of $74,500 on the 7th. However, as Trump abruptly reversed his tariff policy, temporarily suspending high tariffs for 90 days for countries other than China, the market rebounded, with Bit returning to the $84,000 mark today.
During the market rebound, top trader Eugene Ng Ah Sio stated today that he had taken a small short position on ETH, SOL, and XRP when Bit touched $83,500 last night. He believes that unless the Federal Reserve directly intervenes or the US-China tariff situation substantially cools down, the market is unlikely to have a sustained trend.
However, Eugene Ng Ah Sio also mentioned that he has already stopped loss and exited the short positions he opened earlier today. Although he only risked a 2% position, the market has shown substantial strength, with SOL threatening to reclaim the key price of $125, and he will now wait and observe.
Eugene Ng Ah Sio had previously stated that he expected Bit prices to be capped between $74,000 and $83,000, unless an extremely strong cryptocurrency catalyst emerges or the tariff situation eases.
Arthur Hayes Predicts Bit Will Enter a Only-Rising Mode
Notably, against the backdrop of Trump's volatile tariff policy, the $29 trillion US Treasury market dropped over 2% this week, marking the largest decline since September 2019. The bond sell-off also caused the US 10-year Treasury yield to record its largest weekly increase in over 20 years.
As the US bond market experienced a massive sell-off, Bit rose against the trend. With the market generally betting that the deteriorating macroeconomic environment will force the Federal Reserve to intervene, BitMEX founder Arthur Hayes shared a chart of the US 10-year Treasury yield rising to 4.56 and noted:
The situation is developing intensely. If this trend continues, we will see more policy-level responses this weekend. Bit is about to enter an only-rising mode.
