Tariff Uncertainty and Rising Interest Rates Could Stall Crypto Markets Until April, Warns Analyst

Sondergaard highlighted that the resolution of these issues could be key to shifting market dynamics, but that much depends on the ability of global economies to reach a consensus on tariffs.

Looking ahead, Sondergaard remains uncertain about the market’s trajectory post-April 2, as the fate of tariffs will play a crucial role. He noted that while there may be a possibility of some tariffs being lifted, the success of these negotiations relies on the cooperation of various nations, which adds an element of unpredictability.

This unresolved issue may lead to a period of stagnation for risk assets, including cryptocurrencies, until a resolution is found. Sondergaard speculated that the period between April and July could be pivotal, potentially serving as a catalyst for more positive market movement if tariff concerns are addressed.

In addition to trade tensions, Sondergaard pointed out the impact of rising interest rates on the broader investment landscape. The analyst explained that until the U.S. Federal Reserve signals a shift in its monetary policy, investor appetite for riskier assets like crypto is likely to remain subdued. This combination of tariff uncertainties and higher interest rates is expected to continue weighing on the markets, making it difficult for cryptocurrencies and other speculative assets to experience substantial growth in the short term.