Crypto Market Faces Tariff-Driven Volatility Analysts Warn of Correction Before Bull Run

As the crypto market navigates a turbulent start to the second quarter, analysts warn that ongoing tariff-related uncertainties could trigger another downturn. Bitcoin and other cryptocurrencies, still recovering from March's correction, now face fresh volatility linked to shifting U.S. trade policies. According to research firm Nansen, there's a 70% chance of further price declines after April 2, echoing concerns sparked by recent political developments.

President Trump's announcement of new tariffs, framed as a pivotal economic moment, has reignited fears of market instability. Aurelie Barthere, a lead analyst at Nansen, predicts a temporary dip followed by stabilization. "After April 2, we'll likely see another correction, but this could mark the low point for the year before Bitcoin resumes its upward trajectory," she explains. Despite short-term jitters, Barthere remains optimistic about the long-term bull market, citing gradual regulatory progress and steady U.S. economic growth as stabilizing forces.

The U.S. Economic Policy Uncertainty Index continues to climb, reflecting investor unease over trade negotiations. While Treasury discussions and hints of tariff exemptions offer some reassurance, Barthere notes that ambiguity may linger through June. "The true impact of these policies won't be clear until mid-year," she says, emphasizing that crypto's current corrections are part of a broader bullish cycle rather than a bearish reversal.

Market sentiment isn't all bleak. Recent data, including a stronger-than-expected U.S. Purchasing Managers' Index (PMI), suggests resilience. Spot Bitcoin ETFs have also seen renewed inflows, hinting at underlying investor confidence. Barthere highlights that while sentiment indicators fluctuate, hard economic data—like GDP growth—doesn't yet signal a recession. "There's no evidence we've entered a bear market," she asserts.

For crypto investors, the coming months may feel like a rollercoaster ?. Volatility from trade debates and policy shifts could test patience, but Nansen's analysis suggests the bull market remains intact. "We're likely to bottom out after this correction and then push toward new highs," Barthere concludes. As the market digests geopolitical noise, the bigger picture—steady institutional adoption and macroeconomic stability—hints at brighter days ahead. After all, in crypto, every dip has its loyal buyers ?.