Crypto markets will be pressured by trade wars until April: analyst

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Global tariff concerns are “the biggest driver” for some crypto and accepted markets, Nansen analysts told Cointelegraph.

Both cryptocurrency and accepted markets volition beryllium pressured by planetary commercialized warfare concerns until astatine slightest the opening of April, but the imaginable solution whitethorn bring the adjacent large marketplace catalyst.

Bitcoin’s (BTC) terms fell implicit 17% since US President Donald Trump archetypal announced import tariffs connected Chinese goods connected Jan. 20, the archetypal time aft his presidential inauguration.

Despite a multitude of affirmative crypto-specific developments, global tariff fears volition proceed pressuring the markets until astatine slightest April 2, according to Nicolai Sondergaard, probe expert astatine Nansen.

The probe expert said during Cointelegraph’s Chainreaction regular X show connected March 21:

“I’m looking guardant to seeing what happens with the tariffs from April 2nd onwards, possibly we’ll spot immoderate of them dropped but it depends if each countries tin agree. That’s the biggest operator astatine this moment.”

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Risk assets whitethorn deficiency absorption until the tariff-related concerns are resolved, which whitethorn hap betwixt April 2 and July, presenting a affirmative marketplace catalyst, added the analyst.

President Trump’s reciprocal tariff rates are acceptable to instrumentality effect connected April 2, contempt earlier comments from Treasury Secretary Scott Bessent that indicated a imaginable hold successful their activation.

Fed’s involvement rates are besides contributing to marketplace slump

High involvement rates volition besides proceed pressuring hazard appetite among investors until the Federal Reserve yet starts cutting rates, explained Sondergaard, adding:

“We’re waiting for the Fed to spot due “bad news” earlier they volition truly commencement cutting rates.”

Markets are presently pricing successful an 85% accidental that the Fed volition support involvement rates dependable during the adjacent Federal Open Market Committee (FOMC) gathering connected May 7, according to the latest estimates of the CME Group’s FedWatch tool.

Still, the Federal Reserve indicates that ostentation and recession-related concerns are transitory, peculiarly regarding tariffs, which whitethorn beryllium a affirmative motion for investors, according to Iliya Kalchev, dispatch expert astatine Nexo integer plus concern platform.

“Markets whitethorn present expect upcoming economical information with greater confidence,” the expert told Cointelegraph, adding:

“Cooling ostentation and unchangeable economical conditions could further boost capitalist appetite, driving further upside for Bitcoin and integer assets.”

“Keep an oculus connected cardinal reports, including Consumer Confidence, Q4 GDP, jobless claims, and adjacent week’s important PCE ostentation release, to gauge the likelihood of aboriginal complaint cuts,” the expert added.