The cryptocurrency market is experiencing a period of uncertainty due to the imposition of new US customs tariffs, potentially impacting both the crypto market and global financial markets.
Investors Waiting It Out
Prior to the announcement of new tariffs, cryptocurrency investors are adopting a wait-and-see approach. Stella Zlatareva from Nexo noted that the Crypto Fear and Greed Index remains above 'extreme fear' for three consecutive days, indicating a slight market recovery. According to her, Bitcoin is consolidating between $82,000 and $85,000. If market sentiment improves, Bitcoin could rise to $86,500 and $90,000, though many are waiting for it to break above $84,500.
Critical Tariffs for Crypto Market
Aurelie Barthere, a senior researcher at the Nansen platform, estimates a 70% chance of hitting lows by June. Currently, Bitcoin and Ethereum are trading 15% and 22% below their yearly peaks, respectively. Barthere believes that after tough negotiations on tariffs, a clearer recovery process for cryptocurrencies and other risky assets might begin. Both the cryptocurrency market and US stock indices are struggling to rise above the 200-day moving averages, highlighting the need for positive economic news and tariff resolutions.
The tension surrounding new US tariffs continues to externally pressure the cryptocurrency market. Investors and analysts are hopeful for clarity, which could aid in stabilization and recovery.
