Bitcoin Approaches $85K Ahead of Tariffs; DOGE, XRP, and ADA Lead the Major Cryptocurrencies

Key Points:

• Bitcoin remains steady above $81,000 as markets anticipate the impact of upcoming U.S. tariffs and reciprocal deals between Canada and EU nations.

• Despite a broader risk-off mood in the markets, Dogecoin (DOGE) and Cardano (ADA) gained over 2.5%, while Bitcoin ended the quarter with an 11% loss.

• Long-term Bitcoin holders and newer large investors are maintaining their positions, showing resilience, and contributing to the stability of Bitcoin's price.

Bitcoin (BTC) was approaching $85,000 during Tuesday's European trading session as traders largely wait for the impact of U.S. tariffs expected on Wednesday.

Dogecoin (DOGE) and Cardano (ADA) led the way with over 7% gains, while other major cryptocurrencies like Ether (ETH), XRP, Solana's SOL, and BNB Chain's BNB saw gains of nearly 5%.

Overall market capitalization dropped by 3%, with the broader index rising by 3% in the past 24 hours, according to data.

These changes come amid a general risk-off sentiment in the markets, as U.S. equities struggled — the S&P 500 fell by 3% last week, its worst performance since September 2023, while gold surged to new highs, reflecting a shift toward safe-haven assets.

The upcoming tariffs, combined with recent U.S. economic and labor reports, have dampened crypto sentiment. Augustine Fan, head of insights at SignalPlus, noted the absence of new drivers, like significant ETF inflows, and a market stuck in low-confidence mode, contributing to a turbulent end to the quarter. This period concluded with an 11% loss for Bitcoin and marked the largest drop for the S&P 500 since Q2 2022.

On the futures front, speculative positions on Bitcoin through the CME are at their most bearish in years, marking a stark shift from January's bullish sentiment, according to Fan.

"Positioning data only reflects the current market condition and isn't necessarily an indicator for a tradeable setup," Fan explained. "While the catalysts for a sustained rally are scarce right now, we expect any bullish turn to be sharp due to the significant short positions at play."

However, signs of resilience are emerging among long-term holders. According to Glassnode data, holders with 3-6 month positions are experiencing growing profits, with trading activity at its lowest since June 2021, signaling confidence rather than panic selling.

Additionally, newer large investors, or "whales," who have entered the market in recent months, are holding their positions instead of cashing out, which is providing stability to Bitcoin’s price floor, according to Glassnode.

Meanwhile, Jupiter Zheng, a partner at HashKey Capital’s Liquid Fund and Research, stated that they view the tariff uncertainty and the release of economic data as short-term challenges.

“The dip is driven by a risk-off sentiment,” Zheng noted in a Telegram message. “We remain optimistic in the long run as more institutions adopt crypto and regulators globally introduce new policies to foster growth.”