Cryptocurrency markets have been aligning with traditional tech stocks, influenced by macroeconomic factors such as tariff announcements, according to a recent analyst report.
This trend is expected to continue until a shift in market dynamics occurs.
President Donald Trump is set to announce reciprocal tariffs today around 4pm ET, according to a Reuters report.
Trump has for weeks hinted that “Liberation Day” will see dramatic new duties that could upend the global trade system.
How Tariff Policies Affect Computing Infrastructure
Tory Green, CEO of io.net—a decentralized GPU network providing scalable computing power for AI and ML applications— emphasizes that debates over the rising costs of materials like steel for building expansive data centers are “largely irrelevant.”
He points out that both the U.S. and global markets are underutilizing existing computing resources.
Green explains, “Tariffs mean little to meeting the demand for AI computing power as there is, in fact, no need for Big Tech hyperscalers to build football fields full of data centers to meet AI demand. Right now, we are significantly underutilizing the resources we already have.”
io.net works to address this inefficiency by aggregating underutilized GPUs from data centers, crypto mining farms, and personal devices worldwide.
This approach offers developers cost-effective and flexible access to computing power needed for advancing AI technologies without the necessity for extensive new infrastructure.
Green’s perspective challenges the notion that increasing physical data center infrastructure is essential to meet AI demands.
By optimizing the use of existing resources, companies can reduce costs and environmental impact, aligning with sustainable technology practices.
As the crypto market continues to mirror the movements of technology stocks, influenced by factors like tariff policies, innovations in resource optimization, such as those proposed by io.net, may play a pivotal role in reshaping the field of AI computing and its impact on related markets.
What will happen to Bitcoin and Gold prices?
The commodities’ market has been bracing for the past week – gold surged over $3,100, while Bitcoin only reclaimed $84,000.
Arthur Azizov, founder and investor at B2 Ventures explains the market’s reaction to the new tariff policy is expected to be immediate, affecting both traditional assets like Gold and digital assets, with Bitcoin taking the lead.
“Bitcoin’s recent 2.5% gain reflects traders’ anticipation of a softer trade policy. The coin continues its flat, fluctuating between $82.5-85.5k level with temporary upward price surges,” said Azizov.
“After the White House announcement of tariffs, volatility could significantly soar, and a new policy may result in the strengthening of the dollar or global growth slowing. In that case, investors’ portfolios could bear substantial losses, as Bitcoin’s price downward movement started in late January 2025 could continue its fall,” he added.
He explained gold has almost reached a $3150 level, which could mark a new milestone if consolidated.
It could be reached, and the price could continue its upward trajectory in case of real economic fallout and a significant increase in geopolitical risks, as Gold is a safe-haven asset.
“Still, a pullback to $3100 has occurred, and today, the price fluctuates between $3150 and $3100, indicating investors’ uncertainty. The initial market ‘shock’ may likely spike volatility, but it should be a short-term effect. As for long-lasting ones, a lot will depend on how quickly the market adjusts to major changes,” he explained.
Trump’s Tariffs Potentially Supercharge Bitcoin’s Appeal
According to Ryan Lee, chief analyst at Bitget Research Trump’s proposed tariffs potentially supercharge Bitcoin’s appeal by shaking confidence in fiat currencies like the U.S. dollar, especially if inflationary pressures mount.
“With a 20% universal tariff risking stagflation—higher costs without growth—coupled with retaliatory moves from global players as flagged by OCBC’s Vasu Menon, traders on our platform might increasingly turn to Bitcoin as a safe haven, leveraging its decentralized nature to sidestep trade war fallout,” explained Lee.
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