The trade war and its potential escalation have ushered in a new ‘crypto winter’, yet a ‘constructive outlook’ is advised for the latter half of 2025, according to a report by Coinbase.
Analysts have noted a shift to a bear market following the stabilization of Bitcoin and the COIN50 index, which tracks price changes of the top 50 cryptocurrencies, below their 200 DMA.
Experts highlighted the pressure from the macro environment, where traditional risk assets face challenges from tightening fiscal and tariff policies. In such conditions, the path to recovery for cryptocurrencies remains arduous, even with an improved regulatory backdrop, added Coinbase analysts.
They suggest adopting a ‘defensive stance’ over the next four to six weeks, anticipating a bottom formation by the end of the second quarter.
According to QCP Capital, puts dominate Bitcoin options expiring by June, as traders hedge against potential ‘surprises’ from the US-China tariff war.
By June, the cryptocurrency market may reach a local bottom, with the future direction shaped by the outcomes of US negotiations with key trading partners regarding tariffs, according to Nansen.
Previously, Compass Point analyst Ed Engel and experts from Bravos Research reached similar conclusions about the prospects for digital gold’s value growth amid changes in the M2 money supply.