The cryptocurrency market might reach a local bottom within the next couple of months, as global unease surrounding ongoing import tariff discussions continues to dampen investor sentiment in both traditional and digital markets.
On April 2, US President Trump is expected to unveil his plans for reciprocal import tariffs, intended to address the country’s significant $1.2 trillion trade deficit in goods and to stimulate domestic manufacturing.
Although global markets were impacted by the initial tariff announcement, a recent analysis suggests there is a 70% likelihood that cryptocurrency values will hit their bottom by June, as per a principal research analyst focused on cryptocurrency intelligence.
The analyst indicated:
“Data suggests a 70% chance that crypto prices will find their lowest point between now and June, with Bitcoin and Ethereum trading at 15% and 22% below their year-to-date peaks, respectively. Given this information, upcoming discussions will be vital indicators for the market.”
“Once the most challenging aspects of the negotiations are resolved, we anticipate a clearer path for crypto and risk assets to establish a bottom,” she added.
Related: Bitcoin could rise to $250K in 2025 if the Federal Reserve transitions to quantitative easing: prediction
Both traditional markets and cryptocurrencies are currently lacking upward momentum as they await the upcoming US tariff announcement.
BTC/USD, 1-day chart.
“For the key US equity markets and Bitcoin, the price charts have not managed to significantly rise above their 200-day moving averages, while shorter-term moving averages are declining,” noted the analyst in a recent report.
“The fragile state of market psychology highlights the urgent need for positive developments, particularly regarding US economic growth and tariffs,” they added.
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Bitcoin must maintain $82k as analysts view the crypto market in a “wait and see” phase
Investors seem to be in a “wait and see” phase, opting not to take significant positions as markets lack clear direction.
However, the Crypto Fear & Greed Index remains above the “extreme fear” threshold for a third consecutive session, indicating slight improvement despite ongoing caution, as noted by a dispatch editor from a digital asset investment platform.
“This indeed reinforces the notion that markets are in a wait-and-see mode,” the editor mentioned, adding:
“Bitcoin continues to trade within the $82,000 to $85,000 range after a period of recalibration in Q1. The cryptocurrency is navigating this area with pivotal support at $82,000 and potential upside toward $86,500 and $90,000 if overall sentiment stabilizes.”
Other traders are looking for a Bitcoin breakout above $84,500 as a sign for increased upward momentum amidst the prevailing tariff uncertainties.
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