Both cryptocurrency and traditional markets will be forced by concerns in the global trade war until at least at the beginning of April, but potential resolution can bring the next major catalyst to the market.
Bitcoin’s (Btc) Price has dropped more than 17% since US President Donald Trump first announced the import tariffs on inauguration by the president.
Despite the many positive development specific crypto, Global Tariff is afraid will continue to hit the markets until at least April 2, according to Nicolai Sondergaard, research analyst in Nansen.
BTC/USD, 1-day chart. Source: Cointelegraph/Tradingview
Research analyst said during Cointelegraph’s period CHAINREACTION DAY -DAW X Show on March 21:
“I hope to see what will happen to the tariffs from April 2, we will probably see some of them falling down but it depends on whether all countries can go up. That’s the biggest driver at the moment.”
The Crypto Debanking Crisis: #Chainraaction https://t.co/nd4QKKZKNB
– Cointelegraph (@cointelegraph) March 21, 2025
Risk properties may lack direction until tariff-related concerns, which can occur between April 2 and July, presenting a positive catalyst to the market, added the analyst.
President Trump’s tariff rates are set to take effect on April 2, despite earlier comments from Treasury Secretary Scott Bessent indicating a possible delay in their activation.
Related: Ether risk correction to $ 1.8k as ETF streams, tariff fears are going on
Fed interest rates also contribute to market collapse
High interest rates will also continue to touch the appetite of risk to investors until the Federal Reserve starts the cutting rates, explaining the sondergaard, adding:
“We’re waiting for the Fed to see the right” bad news “before they really start cutting rates.”
Target Target Rate Rate. Source: CME Group’s Fedwatch tool
Markets are currently pricing on an 85% chance that Fed will keep interest rates stable at the next meeting of the Federal Open Market Committee (FOMC) on May 7, according to the latest estimates of CME Group’s Fedwatch Tool.
Related: Crypto Debanking is not finished until Jan 2026: Caitlin Long
However, the Federal Reserve indicates that inflation-related concerns and recession are passing by, especially about tariffs, which can be a positive sign for investors, according to Ilaya Kalchev, Dispatch Analyst on the Nexo Digital Asset Investment Platform.
“Markets can now expect the upcoming economic data with greater confidence,” the analyst told cointelegraph, adding:
“Cooling inflation and stable economic conditions can boost investor appetite, driving further upside down for Bitcoin and digital assets.”
“Consider the key reports, including consumer confidence, Q4 GDP, unemployment claims, and the vital release of PCE inflation next week, to measure the likelihood of future rate cuts,” the analyst added.
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