Even though the tariff policy announced on Liberation Day sent the crypto market into a tailspin, some crypto investors are now hoping that things could still turn out for the better. It has now been announced that the collected tariff revenue will be used to buy Bitcoin. Given that Bitcoin is around 25 percent below its all-time high, this may well be a good time for the US to invest. So, can tariff revenue be used to make favorable investments in the crypto market, which will then cause the price to rise again?
Strategic Reserve in Focus: US Government Plans to Continue Active Purchases
Last month, Donald Trump signed the executive order creating the Strategic Reserve of Cryptocurrencies using digital tokens that the US government has already seized in criminal proceedings and therefore owns. Furthermore, Trump has asked the US Secretaries of Commerce and the Treasury to develop a budget-neutral strategy to buy more Bitcoin without burdening taxpayers.
An idea that’s been on the table for some time: Bitcoin could be purchased with tariff revenues – thus allowing the US to add Bitcoin to its reserves without having to impose new taxes or borrow more money. Even if this is currently only an idea, it demonstrates that the US government under Trump is trying to actively invest in cryptocurrencies. In the long term, this could of course have a correspondingly positive impact on prices.
Not only on Bitcoin, but also on altcoins. If the price of Bitcoin rises, the next altcoin season could begin.
Recovery in sight? Some resistance awaits.
In the last 7 days, Bitcoin has risen by more than 10 percent. Ether also rose by around 12 percent, and XRP by more than 17 percent. Solana even gained over 22 percent. Is the market on the upswing again? One could more accurately call it a recovery. It may also be advisable to get back in now – if you want to buy XRP, for example, it’s a good opportunity because the price is well below its all-time high and the forecasts are promising.
Even though Bitcoin has risen well above $85,000, there is still no indication that a breakout towards $90,000 is imminent. This is especially true because it has weakened somewhat overnight and slipped below $84,000.
Although Bitcoin is currently above the 100-hour simple moving average and forming a rising trendline with support around $85,200, there are still some resistances to consider: The first hurdle is at $85,800 and then at $87,200. Yesterday, at $86,100, the price fell back toward $83,200. Nevertheless, the price could move higher again in the coming days.
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