The latest development has been a signal of softening in customs duties, which are the trump card used by US President Donald Trump against other countries.
At this point, the cryptocurrency market is experiencing a quiet uptrend, supported by the US administration’s softer tariff approach and the Fed’s more moderate stance.
However, analysts at K33 Research warned that volatility in cryptocurrencies could increase ahead of Trump’s tariff announcement expected on April 2.
According to The Block, K33 Research analysts Vetle Lunde and David Zimmerman said that Trump will make a tariff announcement on April 2, which is called “Liberation Day,” and cryptocurrencies may face high volatility until today.
At this point, K33 analysts stated that the direction of Bitcoin (BTC) and altcoins will depend on Trump's stance.
Analysts say Trump could raise prices if he takes a softer approach on tariffs, but a tougher approach could lead to big sell-offs and declines like in the past.
“The most serious de-risking appears to have occurred in Bitcoin and the market is now returning to a wait-and-see approach.
While CME investors remain relatively passive and defensive, offshore investors are a bit more optimistic but not entirely bullish.
Here, April 2, when Trump will announce the tariffs, appears as a critical date. If Trump softens his stance, markets may recover. If uncertainty remains, volatility could negatively affect both long and short positions.
“If he takes a tough stance, a sharp decline similar to past tariff-related declines is likely.”
*This is not investment advice.
