Cryptos Show Stabilization Signs Despite Tariff Worries; Long-Term Confidence Persists

After a few days marked by declines, profit-taking, and renewed fears around tariffs, crypto traders remain largely optimistic about the market’s longer-term trajectory.

Market analysts observe that key cryptocurrencies are beginning to bottom out, even as geopolitical tensions and trade concerns keep short-term sentiment cautious.

Bitcoin (BTC) held steady near $105,000 during early Asian trading on Monday, fluctuating minimally over the last 24 hours but down about 5% from last week’s levels.

Other major tokens—Ether (ETH) at $2,523.67, XRP at $2.15, Solana (SOL) at $153.21, Cardano (ADA) at $0.67, and Dogecoin (DOGE) at $0.19—showed comparable movements, suggesting these assets may be forming local support zones that could encourage intraday bounces.

“Bitcoin is hovering around $105K amid investor uncertainty tied to short-term macro factors,” said Nick Ruck, director at LVRG Research. “Concerns over inflation, tariffs, and the U.S. economy have slowed crypto’s bullish momentum, while geopolitical risks have driven some capital withdrawals.”

Still, Ruck underscored optimism for the future: “The long-term outlook remains positive as institutional adoption and user growth steadily advance.”

Trade tensions continue to weigh on investor sentiment. On Monday, China condemned new U.S. restrictions on AI chip exports and software sales, vowing to respond decisively—a move that has injected caution into markets.

“Recent weekend events showed how quickly crypto prices can react to even slight escalations in trade disputes,” noted Jeff Mei, COO at BTSE, in a message to CoinDesk.

Mei urged traders to closely monitor upcoming developments from China, the U.S., potential escalations in the Russia-Ukraine conflict, and key U.S. economic data this week including trade deficits, job numbers, and Federal Reserve statements.

“Market movements remain driven primarily by macroeconomic news, making predictions tricky. Nevertheless, large institutions continue to build crypto positions, which is encouraging,” he added.

Meanwhile, investors appear to be diversifying their crypto holdings beyond Bitcoin, with XRP and Solana gaining traction. As Bitcoin’s price action increasingly aligns with traditional risk assets, some market watchers interpret this as a sign of sustained long-term optimism.

“Uncertainty in trade policies is pushing funds into high-growth tech stocks, but experienced investors are also broadening exposure into crypto—especially assets like Bitcoin and XRP that benefit from growing ETF interest,” said Kathy Qu, research manager at HashKey Cloud.

Qu pointed out that staking and DeFi remain market highlights, with real-world asset tokens gaining momentum. She also noted that Ethereum ETFs stand to benefit from the SEC’s staking exemption, expected to attract more institutional money into DeFi protocols.