The crypto market remains under pressure as investors react to global economic uncertainty and trade war concerns. Bitcoin, currently hovering around $84,000, has seen a correction alongside the broader market. Despite this, total crypto market capitalization has risen 2.44% to $2.76 trillion.
While some investors are selling, uncertainty lingers over whether this rebound will hold.
Analyst Predicts a 90-Day Bitcoin Correction
Market analyst Timothy Peterson suggests that Bitcoin’s current downturn is milder than past bear markets. He defines a bear market as a 20% drop from an all-time high and notes that this decline is shorter than previous ones in 2018, 2021, 2022, and 2024.
Despite short-term corrections, Bitcoin’s adoption remains strong, reducing the chances of a plunge below $50,000. Peterson believes Bitcoin is unlikely to fall under $80,000 and predicts a 20-40% rally after April 15, which could renew investor confidence.
Trade War Fears Weigh on Investor Sentiment
The latest market drop follows U.S. President Donald Trump’s announcement of new tariffs on major trading partners. These tariffs have sparked global retaliation, fueling concerns over a prolonged trade war.
Investors are moving away from riskier assets, including cryptocurrencies, amid uncertain macroeconomic conditions. Data from Glassnode’s Hot Supply metric, which tracks Bitcoin held for a week or less, has fallen from 5.9% in November 2024 to 2.3% in March 2025. This decline suggests fewer speculative trades and weaker market sentiment.
According to Nansen research analyst Nicolai Sondergaard, crypto markets may face trade war-related pressures until at least April 2025, when negotiations could ease tensions.
Retail Traders Are Already Invested, Limiting Bitcoin’s Growth
Another challenge for Bitcoin is the lack of new retail investors. Research from CryptoQuant shows that most retail traders are already exposed to Bitcoin, limiting the potential for fresh capital inflows.
Additionally, Bitcoin’s status as a safe-haven asset is being questioned. Instead of holding steady, Bitcoin has reacted negatively to tariff news, falling alongside traditional risk assets.
Regulatory Uncertainty Adds More Pressure
Regulatory concerns continue to impact Bitcoin’s outlook. Experts predict that U.S. crypto banking restrictions may remain in place until January 2026, despite ongoing efforts to push for clearer regulations.
As the market navigates economic and regulatory challenges, April 2025 could be a key turning point for Bitcoin’s next move.
