Trade War Jitters Shake Crypto Markets

Trade War Jitters Shake Crypto Markets

Uncertainty surrounding the global trade landscape continues to pressure both traditional and cryptocurrency markets. Investors are anxiously awaiting a potential tariff announcement from the US government, expected around April 2nd. This announcement could significantly influence Bitcoin's price throughout the month.

Initial import tariffs on Chinese goods were announced in January, leading to heightened inflation concerns and dampening investor appetite for risk assets. Consequently, Bitcoin (BTC) has experienced an 18% drop, while the S&P 500 index has fallen by over 7% in the subsequent two months.

Stella Zlatareva, dispatch editor at Nexo, a digital asset investment platform, notes that April 2nd is a key date for potential new tariff announcements, further increasing market volatility.

Recent reports suggest the US administration may adopt a more aggressive stance on import tariffs, potentially escalating the trade war. The April 2nd announcement is expected to include reciprocal tariffs targeting major US trading partners, aiming to address the country's substantial trade deficit and promote domestic manufacturing.

Bitcoin ETFs and Whale Accumulation

Despite the overall market uncertainty, large Bitcoin holders (whales) continue accumulating. The number of addresses holding between 1,000 and 10,000 BTC has remained relatively stable since the start of the year, according to Glassnode data. However, this accumulation is below the peak observed in the previous cycle.

Iliya Kalchev, dispatch analyst at Nexo, highlights that while whale accumulation and sustained ETF inflows signal some institutional demand, hawkish surprises related to inflation or trade could keep the crypto market range-bound into April. The recent pause in the 10-day Bitcoin ETF inflow streak, with Fidelity's ETF experiencing significant outflows, underscores this volatility.

Long-Term Bitcoin Price Outlook

Despite short-term concerns, analysts remain optimistic about Bitcoin's long-term price trajectory. Predictions for late 2025 range from $160,000 to over $180,000, suggesting a bullish long-term outlook.

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