70% Probability That the Cryptocurrency Market Will Hit Bottom Before June as Trade Concerns Weigh Heavy

The cryptocurrency market could hit its lowest level in the next two months, with a 70% chance of this happening before June, according to Aurelie Barthere, the chief research analyst at Nansen. The timing heavily depends on the outcome of ongoing global tariff negotiations, particularly the reciprocal import tariffs announced by U.S. President Donald Trump. These tariffs, aimed at reducing the country's trade deficit and boosting manufacturing, are creating instability across financial markets. Trump announced the measures on April 2, aimed at addressing the $1.2 trillion trade deficit. Global markets have shown volatility in reaction to previous tariff announcements, and experts are closely watching the impact of this decision. Barthere emphasizes that the mood of ongoing trade discussions will play a crucial role in determining when the cryptocurrency market hits its bottom. A study by Nansen estimates a 70% chance that cryptocurrency prices will reach their lowest point from now until June. Bitcoin and Ethereum are currently trading 15% and 22% lower than their yearly highs. As both the digital and traditional markets remain sluggish, investors are showing caution. Bitcoin has consolidated in the range of $82,000 to $85,000, indicating limited volatility following a period of correction in the first quarter. Traders are looking for a breakout above $84,500, which would signal a more positive momentum. Support for Bitcoin is seen at $82,000, while some analysts are eyeing the possibility of a rise to $86,500 and even $90,000 if sentiment shifts positively. Despite the market's caution, the Crypto Fear & Greed Index remains above the "extreme fear" level for the third consecutive session. This indicates that, although there has been some improvement in sentiment, investors are still hesitant to hold large positions in an uncertain environment. As a result, many are opting for a "wait and see" approach, postponing significant investments until the outlook becomes clearer. The volatility in both traditional and cryptocurrency markets highlights their interconnectedness amid global economic instability. As the United States continues tariff negotiations, investors are hoping for a resolution that will bring clarity to the market. Barthere believes that once the toughest part of these negotiations is concluded, the cryptocurrency market may finally see a clearer recovery path, signaling a potential bottom for cryptocurrencies like Bitcoin and Ethereum. The bottom line is that trade tensions continue to affect investor sentiment, and the outcomes of these negotiations may play a key role in determining the direction of the cryptocurrency market in the coming months.