Bitcoin and altcoins like Cardano and Polkadot have remained on edge in the past few weeks. BTC has moved sideways, which has led some analysts to compare it with meme coins that often experience less volatility. ADA, DOT, Pepe, and other altcoins are also moving in a tight range this week as they prepare for two key market risks.
Tariff Risks for Cryptocurrencies and Stocks
Crypto and stock prices are preparing for significant market fluctuations this week. With February ending this week, the market is closely watching Trump’s tariff announcements.
Trump stated that the US will levy a 25% tariff on imported steel and aluminum from all countries. These tariffs will impact countries like Japan, Mexico, Canada, and Germany.
Further, Trump stated that Mexican and Canadian imports will be charged a 25% tariff starting March 1. These tariffs are contingent upon the countries reaching agreements on migration and other priority issues like fentanyl.
Trump also hinted that he will apply tariffs on European goods, a move that may affect trade volumes worth billions of dollars.
Therefore, Bitcoin, stocks, and other altcoins will react to these announcements. Indeed, the S&P 500, Nasdaq 100, and Dow Jones had their worst day on Friday as these risks rose.
Tariffs pose a risk because they can lead to higher inflation, pushing the Federal Reserve to maintain high interest rates for longer.
NVIDIA Earnings as a Risk
The other potential market risk to consider is NVIDIA earnings, which will be announced on Wednesday. These results are expected to cap a highly successful year for NVIDIA as demand for artificial intelligence chips surged.
Analysts expect its results to show that the revenue rose by 72% in Q4 to $38 billion, bringing the annual figure to $129 billion. As it has consistently done, Nvidia will likely report better results than expected.
The risk arises if the company warns about its growth this year, a move that could lead to a decline in its stock prices and have a broader negative impact on the market and cryptocurrencies. That’s because NVIDIA is one of the most important companies in the world today.
Bitcoin Price is at a Key Level
The following chart illustrates the current critical levels for Bitcoin.
BTC price chart | Source: TradingView
These risks are occurring at a time when Bitcoin is at a critical juncture. The Bitcoin price was $96,000 on Monday as the two lines of the symmetrical triangle neared their confluence.
With Bitcoin below the 50-day moving average and forming a double-top pattern at $108,277, there is a risk of a bearish breakdown, which would negatively impact altcoins like Cardano, Pepe, and Polkadot.
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