Cryptocurrencies decline on US-Europe tariff spat

US-Europe trade war fears hit cryptocurrencies

“Cryptocurrencies offered no haven from the wave of selling that washed over global markets in response to Trump’s threat to impose 10% tariffs on countries opposing his moves to acquire Greenland. Bitcoin’s run at $100K was stopped in its tracks last week, and while the $90,000 level has yet to be tested it looks like the recovery is on pause for now. A similar picture prevails for Ether. Both have enjoyed a creditable bounce from the lows of November, and like all other markets it takes longer to rise than it does to fall.”

Coinbase plays down White House rift

“Further progress on the CLARITY Act in the US has slowed as key players look towards a compromise on key issues. While Coinbase has been at pains to flag that it is working with the administration to find a resolution, the environment in the US is becomingly increasingly strained. Having been standard bearers for cryptocurrencies as alternatives to traditional assets, cryptocurrency firms now find themselves having to work with government institutions to develop oversight rules that preserve the space’s separation from traditional assets.”

What we’re watching

“The Greenland tariff spat adds to what was an already busy week. Markets are waiting to see if the EU goes for a tough response that may simply escalate the situation, or opts for a back-channel approach. As before, the best argument for a more positive view on bitcoin and ether comes from the weekly chart; so long as the November lows hold, a bullish outlook still seems plausible.”