In light of recent tariff announcements by the United States, analysts from investment firm Nansen have issued a warning for investors regarding the need for caution.
Impact of New Tariffs on the Market
U.S. President Donald Trump announced the introduction of new tariffs, starting at 10% and increasing sharply for countries such as China, Japan, and Vietnam. Some effective rates are expected to approach 50% once exemptions are factored in. The implementation of tariffs will begin on April 5.
Market Reactions
Financial markets reacted to the tariff announcements with declines. U.S. small caps saw a broad equity sell-off, cryptocurrencies weakened, and the U.S. dollar declined against major currencies. Nansen analysts note that markets are now pricing in a stagflationary scenario marked by stagnant growth and inflationary pressures. > "Now is probably the worst of the tariff uncertainty, and negotiations are likely to linger," wrote Nansen Principal Research Analyst Aurelie Barthere.
Cryptocurrency Outlook
Cryptocurrencies are also bearing pressure. Bitcoin and Ethereum charts show weakening momentum, with potential 'death crosses' ahead. The report warns that this is not the moment to catch falling knives. > "Don’t fight the tape," emphasizes the Nansen note. "Patience is a virtue."
In the face of uncertainty surrounding the new tariff regime in the U.S., Nansen analysts advise investors to stay on the sidelines while waiting for more favorable economic and policy conditions.
