Cryptocurrency and traditional markets are facing ongoing pressure from global trade wars and high interest rates, likely until at least early April. Analysts suggest potential market improvements may follow tariff discussions. Upcoming economic data and Federal Reserve actions will be pivotal in shaping investor sentiment and market direction.

Cryptocurrency and traditional markets are anticipated to remain under pressure due to ongoing global trade war concerns until at least early April, with a possible resolution acting as a catalyst for market movement. Since the announcement of import tariffs by U.S. President Donald Trump on January 20, Bitcoin (BTC) has declined over 17%. Nicolai Sondergaard, research analyst at Nansen, emphasizes that the tariffs will continue to influence market pressures until discussions progressed after April 2.

Sondergaard expressed hope for tariff resolutions beyond the beginning of April, commenting, “I’m looking forward to seeing what happens with the tariffs from April 2nd onwards; maybe we’ll see some of them dropped but it depends if all countries can agree.” Risk assets may find it challenging to gain direction until these issues are resolved, which could create opportunities for market recovery between April and July.

President Trump’s announced tariff rates are scheduled to take effect on April 2, yet Treasury Secretary Scott Bessent has hinted at a potential delay. Moreover, high interest rates are further impacting investor sentiment until the Federal Reserve implements rate cuts. Sondergaard noted, “We’re waiting for the Fed to see proper ‘bad news’ before they will really start cutting rates.”

Current market forecasts suggest an 85% likelihood that the Fed will maintain interest rates at the upcoming Federal Open Market Committee meeting on May 7. Meanwhile, Iliya Kalchev from Nexo digital asset investment platform points out that inflation and recession concerns may be perceived as temporary, offering a positive outlook. Kalchev stated, “Markets may now expect upcoming economic data with greater confidence.”

He adds that critical upcoming reports, such as Consumer Confidence and Q4 GDP, should be monitored for indications of possible rate cuts, which could enhance appetites for Bitcoin and other digital assets.

In summary, the cryptocurrency and traditional markets are likely to experience sustained pressure from global trade tensions and high interest rates until a potential resolution emerges following April 2. Analysts highlight the significance of upcoming economic data and Federal Reserve decisions as crucial factors that may influence market direction and investor sentiment in the near future.

Original Source: cointelegraph.com

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