Investing.com – Bitcoin remained range-bound on Wednesday, as investors sought clarity on impending U.S. trade tariffs amid fears the recent rise could be a “bull trap”.
The world’s largest cryptocurrency slipped 0.9% to $87,350.0 by 10:10 ET (14:10 GMT)
Bitcoin faces resistance; investors seek clarity on tariffs
Market participants cautiously await President Donald Trump’s planned reciprocal tariffs set to commence on April 2, targeting specific U.S. trading partners.
Initially, broad levies were anticipated; however, recent reports suggest a more selective approach, focusing on countries with significant trade imbalances with the U.S.
The cryptocurrency market’s sensitivity to geopolitical developments has been evident, with Bitcoin’s price movements closely linked to news on trade policies.
For instance, Bitcoin jumped above $88,500 at the start of the week after media reports suggested expectations of a measured approach by Trump while imposing fresh tariffs.
However, analysts believe that Bitcoin faces potential resistance around the $90,000 level, and investors fear that this recent rise could be a “bull trap”.
A bull trap is a false signal where the price briefly rises, making investors believe an uptrend is starting, but then quickly drops, leading to losses for those who bought in.
GameStop adds Bitcoin to its treasury reserves; shares surge 8%
GameStop Corp ’s (NYSE:GME) board on Tuesday approved the company’s investment policy to include Bitcoin as a treasury reserve asset.
This strategic move allows GameStop to allocate a portion of its cash holdings or future financing proceeds into Bitcoin, although the company has not specified a maximum investment limit.
This decision aligns GameStop with other corporations, such as Strategy (formerly MicroStrategy Incorporated (NASDAQ:MSTR)), that have integrated Bitcoin into their financial strategies.
The announcement coincided with GameStop’s fourth-quarter earnings report, which revealed net sales of $1.283 billion—a decline from $1.794 billion in the same period the previous year. Despite the drop in revenue, the company reported a net income of $131.3 million, up from $63.1 million year-over-year, attributed to cost-cutting measures and operational streamlining.
GameStop’s stock, the so-called original "meme stock", surged more than 11% after the Wednesday market open.
Crypto price today: most altcoins muted; Polygon, DOGE jump
Most altcoins showed marginal moves amid a cautious mood.
World no.2 crypto Ethereum edged 1.2% lower to $2,032.79.
World no. 3 crypto XRP fell 0.5% to $2.42.
Solana slid 2%, and Cardano edged down 0.2%, while Polygon jumped 5%.
Among meme tokens, Dogecoin advanced over 6%, while $TRUMP rose 1.3%.
Ayushman Ojha contributed to this report.