Solana Ascends 8% as Market Assesses Potential Shift in Trump’s Tariff Policies

Summary

• Solana’s price surged 8%, alongside Bitcoin’s rise towards $90,000, as markets reacted positively to indications that President Trump might implement narrower tariffs than initially anticipated.

• While reports suggested potential tariff exemptions, President Trump also introduced a new tariff on Venezuelan oil and gas, creating ongoing market uncertainty regarding trade policy and its impact on risk assets.

• Alongside Solana’s rebound, meme coins, including Solana-based Fartcoin, showed signs of recovery, with speculation that Trump’s own social media mention of a Solana-based meme coin might have played a role in boosting sentiment.

While Donald Trump‘s tariff policies have previously exerted downward pressure on the cryptocurrency market, asset prices experienced a surge after the U.S. president hinted at a possible reduction in the breadth of these measures.

The value of Solana (SOL) saw an upward trajectory on Monday, concurrent with Bitcoin‘s ascent towards the $90,000 mark, as investors actively evaluated the possibility of the White House implementing more circumscribed tariffs than initially anticipated.

Reports from both Bloomberg and The Wall Street Journal on Sunday indicated that President Donald Trump’s administration is still set to impose “reciprocal tariffs” within nine days on U.S. trading partners.

These reports suggested that exemptions might be granted to specific countries and certain industry-specific goods from these broad import levies.

These reports, while offering some reassurance regarding escalating trade disputes, were juxtaposed with the President’s announcement of a new tariff on Monday.

Bitcoin and Solana Lead Crypto Market Uptick

Via a post on Truth Social, Trump declared that effective April 2nd, nations purchasing oil and gas from Venezuela would face a 25% tariff on their trade exchanges with the United States.

In this declaration, Trump designated April 2nd as “Liberation Day.” His administration had, for several weeks, been building anticipation surrounding this date, following earlier postponements of tariff implementations against Mexico and Canada.

Despite Bitcoin’s prevailing upward price movement, analysts at QCP, a Singapore-based trading entity, cautioned that the current price action might not solidify into a sustained upward trend.

In their Monday analysis note, they suggested that “imminent tariff escalations” could soon exert renewed pressure on risk-sensitive assets.

Notwithstanding Trump’s imposed tariff threat directed at countries importing energy from Venezuela, Bitcoin’s value appreciated by 4.2% on Monday, reaching approximately $88,500, as per data from crypto data aggregator CoinGecko.

Simultaneously, Solana’s price witnessed an increase to $142, representing an approximate 8% climb over the preceding 24-hour period.

Analysts at QCP highlighted that Bitcoin’s “rally appears to be fueled by genuine spot market demand,” differentiating it from instances of leveraged trading within the Bitcoin futures market, which “typically experience abrupt corrections upon liquidation events.”

Data from crypto analytics platform CoinGlass indicated that the total value of outstanding Bitcoin futures contracts had risen to $53 billion by Monday, yet it remained below the levels recorded a month prior.

Concurrently, data from CoinShares indicated a rebound in crypto investment products, ending a consecutive 5-week decline.

Meme Coins on Solana See Revival, Possibly Influenced by Trump

Greg Magadini, Director of Derivatives at crypto data provider Amberdata, elucidated the phenomenon to Decrypt, stating, “In a markedly bullish market environment, traders often employ leverage to maximize their long positions through futures, perpetual swaps, and options contracts.

This practice can render the market susceptible to sudden downturns, as these positions are supported by relatively thin layers of equity.”

Solana’s renewed upward momentum coincides with indicators of recovery within certain meme coin markets, which had previously been negatively impacted by anxieties surrounding Trump’s trade policies.

As an example, Fartcoin (FARTCOIN), a Solana-based meme coin, registered a 15% increase, reaching $0.56 and achieving its highest valuation in almost six weeks, according to CoinGecko metrics.

It is suggested that the president himself may have inadvertently contributed to the bolstered price of meme coins.

On Sunday, Trump referred to his Solana-based meme coin via a Truth Social post.

This coin subsequently saw a 3% rise on Monday, trading around $11.81, according to CoinGecko.

Also Read: Canadian Tariffs by Trump Raise Concerns for Cryptocurrency Market

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