Crypto Markets Stabilize as Trade Fears Ease, But Economic Worries Persist

In the past 24 hours, the cryptocurrency markets saw mixed results, with VeThor (VTHO) leading the charge, soaring 37%, while other tokens like Dogecoin (DOGE) and Story Protocol’s IP experienced significant volatility, showing resilience amidst lingering tariff concerns.

Bitcoin (BTC) and Ether (ETH) remained mostly flat, holding steady at around $85,000 and $1,630, respectively. Meanwhile, the broader cryptocurrency market showed a slight pullback, with the CoinDesk 20 Index falling by nearly 2%, driven by losses in DOGE and Solana (SOL), which dipped by over 2.5%. Despite these fluctuations, some traders remain cautiously optimistic as trade-related fears slowly subside.

Augustine Fan, head of insights at SignalPlus, shared with CoinDesk: “The markets are now focusing on the U.S. recession risks, with betting markets showing a 40%-60% chance of a downturn by 2025. However, sentiment tends to dictate market movements more than fundamentals, and the crypto space has managed to weather the storm better than equities recently.”

Amidst these developments, Mantra’s OM token saw a remarkable 20% rebound after a dramatic sell-off on Sunday that saw the token lose 90% in value within an hour. The recovery, however, has yet to fully restore investor confidence, as skepticism persists regarding the sustainability of the rally. Similarly, Story Protocol’s IP token displayed a similar pattern, initially dipping 20%, before rising over 30% in a short span, sparking worries of a potential repeat of the OM sell-off.

On a more positive note, VeThor’s (VTHO) price surged following the announcement of UFC President Dana White joining as a strategic advisor, which sparked investor excitement for the RWA-focused token’s long-term potential. This surge also coincides with growing expectations of VeThor’s increasing adoption in mainstream markets.

While Bitcoin continues to consolidate around the $85,000 level, QCP Capital noted that the crypto market is seeing a cautious yet constructive outlook for the longer term. “Bitcoin is currently trading sideways between the $80,000-$90,000 range, and we expect this trend to continue as we await further clarity on the trade situation,” said the firm’s analysts. “The market remains focused on mid-term bullish bets, with $100,000 call options emerging as the most favored among traders.”

As fears of a trade war between the U.S. and Europe begin to ease, some traders are hopeful that the worst of the tariff-driven sell-offs may be behind them. “With the Federal Reserve’s commitment to market stabilization, there’s growing confidence that the crypto market may recover, and further market volatility will be manageable,” said Jupiter Zheng of HashKey Capital. “The ongoing trade talks between the U.S. and other nations could also provide a catalyst for improved sentiment in the coming weeks.”