The crypto market has been trading sideways, with uncertainty stemming from the ongoing US-China trade war causing a significant downturn. However, there is hope for a rebound on the horizon, as US President Donald Trump recently hinted at a potential end to the trade war. Trump’s statement that he doesn’t want to raise tariffs further and is considering reducing them could signal the possibility of a trade agreement between the two countries, which in turn could lead to a massive rebound in the crypto market.
The news of a potential end to the US-China trade war has already had a positive impact on the Bitcoin price, leading to a sharp rally. Analysts like Kevin Capital suggest that the consolidation phase in the crypto market could soon come to an end, indicating that the market is nearing the completion of this phase and may be gearing up for a strong bounce. The focus is on whether Bitcoin will make new highs or a lower high, which could signal the beginning of a bear market.
Market participants are also keeping an eye on macro fundamentals, such as the Federal Reserve’s next move. While Fed Chair Jerome Powell recently stated that there are no plans to lower interest rates in the near future, Bank of America has predicted four rate cuts this year, with the first potentially coming at the May FOMC meeting. These macroeconomic factors could have a significant impact on the crypto market and investors are closely monitoring developments in this area.
The potential resolution of the US-China trade war and the impact of macroeconomic fundamentals are key factors driving the sentiment in the crypto market. Trump’s hint at ending the trade war has created optimism among traders and investors, with expectations of a rebound in the market once an agreement is reached. The Bitcoin price rally following the news is a clear indication of the market’s response to positive developments.
Overall, the crypto market is poised for a potential rebound as the US-China trade war nears a resolution and macroeconomic fundamentals come into play. Analysts believe that the consolidation phase may soon come to an end, with market participants closely monitoring factors such as interest rates and spot volume. As the market anticipates the potential end of the trade war and the Federal Reserve’s next move, investors are gearing up for potential opportunities in the crypto space.
