Analyst: The trade war will continue to pressure the crypto market until April, potential solutions may bring the next major catalyst

According to Cointelegraph, Nansen research analyst Nicolai Sondergaard stated that global tariff concerns will continue to pressure the market, at least until April 2nd. "I look forward to seeing how the tariff issue will develop from April 2nd onwards. Perhaps we will see some tariffs being cancelled, but this depends on whether all countries can reach a consensus. This is currently the biggest market driving factor.

Risk assets may lack directionality until concerns related to tariffs are resolved, which could happen between April and July when positive market catalysts might emerge. Trump's reciprocal tariff rate is set to take effect on April 2nd, although Treasury Secretary Scott Bessent previously indicated it might be delayed.

Apart from trade wars, high interest rates will also continue to suppress investors' risk appetite until the Federal Reserve finally begins cutting rates. According to the latest estimates from CME Group's FedWatch tool, there is currently an 85% chance that the Federal Reserve will keep interest rates unchanged at its next Federal Open Market Committee (FOMC) meeting on May 7th.

Nexo digital asset investment platform analyst Iliya Kalchev said that The Fed believes inflation and recession-related worries are temporary - especially those about tariffs - which could be a positive signal for investors. "The market may now anticipate upcoming economic data with greater confidence. Cooling inflation and stable economic conditions could further boost investor confidence and drive Bitcoin and digital assets higher."