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Crypto market likely to bottom by June amid tariff uncertainties

Crypto market likely to bottom by June amid tariff uncertainties

GrafaGrafa2025/04/03 03:10
By:Mahathir Bayena

The cryptocurrency market is projected to find its local bottom between April and June 2025, driven by global trade negotiations and economic uncertainties.

According to Nansen’s principal research analyst Aurelie Barthere, there is a 70% probability that crypto valuations will stabilise within this timeframe.

Barthere highlighted that Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) are currently trading 15% and 22% below their year-to-date highs, respectively.

She emphasised that upcoming discussions on U.S. tariffs and economic data will serve as critical indicators for market recovery.

"Once the toughest part of the negotiation is behind us, we see a cleaner opportunity for crypto and risk assets to finally mark a bottom," Barthere stated.

The uncertainty stems from U.S. President Donald Trump’s announcement of reciprocal import tariffs aimed at reducing the country's $1.2 trillion trade deficit and boosting domestic manufacturing.

These measures have weighed heavily on both traditional and cryptocurrency markets, limiting upside momentum.

Nansen’s April 1 report noted that key technical indicators remain fragile, with BTC failing to break above its 200-day moving average and lower-lookback averages continuing to decline.

The report stressed the importance of positive developments in U.S. growth and tariff negotiations to improve market sentiment.

Further complicating the outlook are broader macroeconomic factors, including Federal Reserve Chairman Jerome Powell’s upcoming speech on Friday.

Investors are closely watching whether Powell will signal potential interest rate cuts amid inflation concerns, as such decisions could influence both equity and crypto markets.

Despite cautious investor sentiment, the Crypto Fear & Greed Index remains above extreme fear levels, suggesting marginal improvement in market psychology.

Analysts predict Bitcoin will consolidate within the $82,000–$85,000 range, with key support at $82,000 and potential upside toward $90,000 if sentiment stabilises.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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