Expect short-term crypto volatility, but Fed response could spark rebound as inflation hedge – Binance Research
According to a Binance report, market sentiment has now become cautious, with investors reacting to the tariff announcements in classic ‘risk-off’ behavior as they expect more volatility.
As a result, total crypto market capitalization has dropped an estimated 25.9% from January highs — canceling out about $1T in value — highlighting its sensitivity to macroeconomic instability.
Crypto assets have mostly moved in lockstep with equities, with both experiencing a reduction in demand, broad selloffs, and a slide into correction territory. This seems to have pushed investors seeking safety from the volatility towards traditional safe havens like bonds and gold, causing them to rally, with gold breaking successive all-time…
