Crypto Market Remains Under Pressure as Investors React to Economic Uncertainties and Ongoing Trade War Concerns

The crypto market remains under pressure as investors react to economic uncertainties and ongoing trade war concerns. Bitcoin, currently trading around $84,000

The crypto market continues to face headwinds as investors digest ongoing economic uncertainties and the latest developments in the U.S.-China trade war. Bitcoin (BTC) slipped 0.32% over the past 24 hours to $83,894.6 at 08:28 ET (12:28 GMT). Meanwhile, the world’s biggest cryptocurrency saw a period of correction alongside the broader crypto market, with total market capitalization climbing 2.44% to $2.76 trillion.

As some sellers are pulling back, there is some uncertainty over whether the current rebound can hold.

Analyst Predicts 90-Day Bear Market

Market analyst Timothy Peterson predicts that Bitcoin’s recent downturn is relatively mild in comparison to past bear markets. Characterized by a 20% decline from all-time highs, this pullback is weaker in magnitude than historical declines and is expected to last only 90 days.

Examining ten previous bear markets, analyst Timothy Peterson observed that only four were worse in terms of duration—2018, 2021, 2022, and 2024. Despite short-term price drops, Bitcoin’s adoption trends remain strong, rendering a deep decline below $50,000 unlikely.

Moreover, Peterson suggests that BTC may not fall below $80,000 considering the momentum. He predicts a possible slide over the next 30 days, followed by a 20-40% rally after April 15. This rally could bring renewed investor interest and push Bitcoin to new highs.

Trade War Fears Impact Investor Sentiment

The recent bloodbath was caused due to U.S. President Donald Trump’s new tariffs on multiple trading partners. These tariffs have triggered retaliatory measures across the globe, raising concerns of a prolonged trade war.

Investors are now pulling back from riskier assets, including cryptocurrencies, as macroeconomic conditions are not favorable. In the meantime, Data from Glassnode’s Hot Supply metric, which tracks BTC held for a week or less, shows a sharp decline from 5.9% in November 2024 to 2.3% in March 2025. This suggests a drop in speculative trading and highlights weak market sentiment.

Nansen research analyst Nicolai Sondergaard warns that crypto markets may face trade war-related pressures until at least April 2025, when negotiations could ease tensions.

Retail Traders Already Invested, Limiting Further Gains

Another factor putting pressure on Bitcoin’s price is the lack of fresh retail investment. According to CryptoQuant, most retail traders are already exposed to BTC, reducing hopes of a sudden influx of capital to drive prices up.

Plus, the narrative of Bitcoin as a safe haven asset is being challenged, as its price has reacted negatively to tariff news, falling alongside other risk assets. Regulatory challenges also persist, with experts predicting that U.S. crypto banking restrictions could last until January 2026, despite efforts to push for clearer regulations.