Original Title: This is where crypto insiders see the market head next

Original Author: Eric Johansson

Original Source: https://www.dlnews.com/articles/markets/this-is-where-crypto-insiders-see-the-market-head-next/

Translation: Daisy, Mars Finance

Crypto insiders predict the next steps for the market

• The total market value of cryptocurrencies evaporated by 12% in the past week
• Here are the predictions from industry insiders regarding market trends

Preparing for a Pain Period

This essentially summarizes the core views of stakeholders and analysts in the cryptocurrency industry a week after Trump's tariff policy triggered an evaporation of about 12% ($335 billion) in the total market value of cryptocurrencies.

At least this is their judgment on the short-term trend. In the long term, traders still seem to hold hope.

"The market sentiment is tense but not completely pessimistic," said Timo Lehes, co-founder of the cryptocurrency trading platform Swarm Markets, to DL News. "Macroeconomic pressures and regulatory uncertainties continue to exert pressure, but the unique stubborn optimism of cryptocurrency practitioners has eased this pressure."

As the U.S. President's comprehensive tariffs on dozens of countries took effect on Wednesday, he shared insights with other experts.

Short-term Pain

Risk assets such as cryptocurrencies and tech stocks have been particularly hard hit in this round of market downturn. The tech-heavy Nasdaq 100 index fell about 11% in the past week.

"This kind of macro uncertainty often triggers a risk-averse response, and investors will withdraw funds to observe the developments in growth, policy, and trade," said Binance CEO Changpeng Zhao in a statement.

Bitcoin fell about 9% in the past seven days to around $77,000, but Joel Kruger, a strategist at LMAX Group's cryptocurrency trading market, believes it may dip to the $70,000 mark.

Long-term Bullish

Despite traders preparing for further declines, industry insiders remain optimistic in their public comments.

Market observers like Arthur Hayes, co-founder of BitMEX, are betting that the Federal Reserve will respond to the crisis by allowing more funds to flow into the U.S. economy. If the Fed does so, he expects Bitcoin to reach $250,000 by the end of the year.

The first clue to the Fed's response will emerge when the minutes from the March meeting are released on Wednesday, which took place before Trump announced the tariff policy on April 2.

"Any hint that the Fed is leaning towards a more accommodative policy path could provide a positive stimulus for the market, including cryptocurrencies," Kruger stated.

The CME FedWatch tool shows a 54% probability of a rate cut by the Fed in May, and a 96% probability of a rate cut in the July meeting. Rate cuts typically stimulate investment in risk assets.

"There will be some rate cuts and market liquidity injections this year," said Alice Liu, research director at cryptocurrency data company CoinMarketCap, to DL News. "The specific magnitude or exact timing will depend on the power struggle between the Fed and the Trump administration."

Her prediction? These measures will be implemented before the third quarter, pushing Bitcoin to new highs, she stated.

"We will witness new historical highs by the end of the year," she said.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。