The cryptocurrency market can hit its bottom in the next two months, subject to developments in global trade negotiations. Market experts are of the view that uncertainty about US import tariffs has been restraining both mainstream and digital assets.
Tariff Announcements Create Market Tension
On April 2, US President Donald Trump is expected to announce new import tariffs, aiming to reduce the country’s $1.2 trillion trade deficit and boost domestic manufacturing.
While the first round of tariffs negatively impacted global markets, there is now a 70% chance that crypto prices will bottom by June, according to Aurelie Barthere, principal research analyst at Nansen.
Signs That a Market Bottom Is Near
Barthere noted that:
- Bitcoin (BTC) is trading 15% below its yearly high.
- Ethereum (ETH) is down 22% from its peak.
- The next round of trade discussions will be key in determining market trends.
“We see a clearer opportunity for crypto and risk assets to mark a bottom once the toughest part of the negotiation is behind us,” Barthere stated.
Crypto Market in a “Wait and See” Phase
Both traditional stocks and crypto assets lack momentum ahead of the upcoming tariff announcement. As per Nansen’s April 1 research report:
- The US equities market and Bitcoin have not been able to breach important resistance levels.
- The Crypto Fear & Greed Index has stayed above extreme fear, registering some resilience of investors.
- The market requires some positive economic growth news and trade policy news to change sentiment.
Bitcoin’s Important Price Levels to Watch
Bitcoin is still oscillating in the range of $82,000 and $85,000, with investors watching closely its next step.
As per Stella Zlatareva, dispatch editor at Nexo:
- BTC needs to maintain support at $82,000 to prevent further losses.
- A break above $84,500 could trigger a rally to $86,500 and $90,000.
- More clarity is awaited by investors before building bigger positions.
Tariff talks affecting the global risk sentiment, players are expecting crypto to find bottom by June. Trade fears recede and Bitcoin and other assets may bounce back earlier than anticipated.
