According to Ollie Valterele, Nansen’s leading research analyst, the cryptocurrency market could reach its lowest point within the next two months, with a 70% chance of happening before June. This timing relies heavily on the outcome of ongoing global tariff negotiations, particularly the consequences of mutual import duties announced by US President Donald Trump. These tariffs aim to reduce the country’s trade deficit and strengthen manufacturing, creating uncertainty across financial markets.
Trump announced these measures on April 2, aiming to address the $1.2 trillion trade gap. The global market has already shown volatility in response to previous tariff announcements, and experts are closely watching the impact of this decision. Barthere emphasized that the atmosphere of the ongoing trade debate will play a key role in determining when crypto markets will find their bottom. Nansen’s research estimates a 70% chance that crypto prices will reach their lowest points between now and June.
Bitcoin and Ethereum are currently 15% below their annual highs. Investors are cautious as both digital and traditional markets are stagnating. Bitcoin has been consolidated between $82,000 and $85,000, indicating a restricted movement after the first quarter recalibration period. Traders are looking for breakouts that exceed $84,500. This shows more positive momentum. Bitcoin support is seen at the $82,000 mark, but some analysts have been looking at a potential rise to $86,500, or even $90,000, if emotions change positively.
Despite the market cautiousness, the Crypto Fear & Greed Index surpasses the “extreme fear” mark of three consecutive sessions. This suggests that while there is some improvement in emotions, investors are still eager to gain a big position in an uncertain environment. As a result, many have opted to adopt a “viewed as a wait” approach, refraining from important investments until the outlook becomes clearer.
It highlights how volatility in both traditional markets and cryptocurrency has been intertwined in the face of global economic uncertainty. As the US continues to negotiate tariffs, investors want a resolution that will provide clarity to the market. Barthere believes that once the most difficult part of these talks is over, the crypto market will ultimately see a clearer path to recovery, showing the potential bottom of cryptocurrencies such as Bitcoin and Ethereum.
The key point is that trade tensions continue to shape investors’ sentiment, and the outcome of these negotiations is likely to be crucial in determining the direction of crypto markets in the coming months.