Markets await President Trump's tariff announcement, which could impact Bitcoin and the U.S. stock market - IcoHolder.

On Wednesday, President Donald Trump is set to announce new tariffs, which will be imposed on a range of countries with immediate effect. The news has caused significant uncertainty in the markets over recent weeks, but with the impending tariff details now about to be revealed, greater clarity could help restore stability. Investors are particularly eager to see whether this move will reverse the recent downward trends in both the U.S. stock market and Bitcoin.

While the news surrounding the tariffs is important, what really drives market movements is certainty. Markets tend to respond more to the certainty of expected outcomes than to the potential for rapid, unpredictable changes. In this case, the ambiguity about the severity of the tariffs and the number of countries affected has weighed heavily on market performance. However, once President Trump provides the full details on Wednesday, the markets may find that much of the anticipated impact has already been factored in. This could provide the conditions needed for a recovery.

The U.S. stock market, particularly the S&P 500, has seen a notable decline, with a drop of over 10% from its peak. Currently, the market is finding support at key levels, with potential for a rebound. Indicators such as the Stochastic RSI and the Relative Strength Index suggest that a recovery could be on the horizon. The same trend is evident in several major tech stocks, which have similarly experienced downturns but are now showing signs of potential reversal. If the market can regain its footing, it could help boost other correlated assets, including Bitcoin.

Bitcoin, which has moved in sync with the stock market, is also primed for a potential breakout. The cryptocurrency has been constrained by resistance at around $85,000, but recent technical indicators suggest it is in a favorable position for a surge. A strong rally in the stock market could provide the necessary momentum for Bitcoin to break through its resistance levels and push higher.

In contrast, a rejection of the upward trend by Bitcoin could see its price fall back to $70,000. However, much of Bitcoin's potential for growth hinges on the direction the U.S. stock market takes following the tariff announcement. As markets await this pivotal event, all eyes will be on President Trump’s speech and the clarity it provides about future trade policies.