Trump Tariff Threats Spark 20% XRP Rebound

On April 7th, the US Treasury market experienced a significant event as a wave of basis trading unwinding occurred, triggered by market panic due to tariff threats from Trump. This event led to a rapid surge in long-term yields, causing a ripple effect across various financial markets.

In response to the market turmoil, the cryptocurrency XRP saw a brief dip to $1.61 on Monday. However, during the Asian trading session on Tuesday, as the market digested the implications of Trump's policies and received positive news regarding ETFs, XRP quickly rebounded to $2. This rebound indicated that digital assets still hold significant appeal despite the market volatility.

According to a Bitunix analyst, the unwinding of basis trades in the US Treasury market has led to a surge in bond yields. This surge is expected to cause safe-haven funds to continue oscillating in the crypto market in the short term. The analyst suggests that XRP's technical performance within the $1.74–$2 range will be crucial in determining its next move. Investors are advised to utilize the $1.74 support level and the $2 resistance level flexibly, while practicing strict risk management to navigate the current market conditions.