Crypto markets will be under pressure by trade war until April: Analysts

Both cryptocurrencies and traditional markets will be under pressure on global trade war concerns until at least early April, but potential solutions could potentially catalyze the next big market.

Bitcoin (BTC) prices have exceeded 17% since US President Donald Trump first announced import duties on Chinese products on January 20th, the day after the president's inauguration.

According to Nansen research analyst Nikolai Sondergaard, there are a number of positive developments specific to encryption, but they will continue to put pressure on the market until at least April 2nd.

The research analyst said on the March 21st Cointelegraph's ChainReaction Daily X Show.

“We're looking forward to seeing what happens with tariffs after April 2nd. Maybe we'll see some of them fall, but that depends on whether all countries can agree or not. That's the biggest driver at the moment.”

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Risk assets may lack direction until tariff-related concerns are resolved, analysts added that this could occur between April 2nd and July and present a positive market catalyst.

President Trump's mutual tariff rate is expected to take effect on April 2nd despite previous comments from Treasury Secretary Scott Bescent, which showed possible delays in their revitalization.

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Fed interest rates also contribute to market slump

High interest rates will also continue to put pressure on investors' risk appetite until the Federal Reserve finally begins its cut rate, Sondergaard added:

“We're waiting to see the right 'bad news' before the Fed actually starts cutting. ”

According to the latest estimates from CME Group's FedWatch tool, the market is currently priced with an 85% chance that the Fed will hold consistently at the next Federal Open Market Committee (FOMC) meeting on May 7th.

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Still, the Federal Reserve shows that concerns related to inflation and recession are temporary, particularly with regard to tariffs that could be a positive indication for investors, according to Iliya Kalchev, a temporary analyst at the NEXO Digital Asset Investment Platform.

“The market may now look forward to more confident economic data,” an analyst told Cointelegraph, adding:

“Cooling inflation and a stable economic situation could further boost investors' appetites and promote the additional benefits of Bitcoin and digital assets.”

“Look at key reports, including consumer trust, fourth GDP, unemployment claims, and key PCE inflation releases next week, to assess the potential for future rate reductions,” the analyst added.

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