What Next For Crypto Market As Trump Signals Potential End To US-China Trade War?

The crypto market, led by the Bitcoin price, continues to trade sideways, with macroeconomic fundamentals causing much uncertainty at the moment. However, a rebound could be on the horizon with US President Donald Trump signaling a potential end to the US-China trade war.

Crypto Market Eyes Rebound As Trump Suggests US-China Trade War Could Soon End

The crypto market could soon rebound as Donald Trump recently suggested that the US-China trade war may soon come to an end. According to a Reuters report, the US president stated that he doesn’t want to raise the tariffs further because at a certain point, they reach a point where people stop buying imported goods.

He added that they may want to reduce the tariffs because they want people to buy, and at a certain point, people will stop buying again. Trump has gone as far as imposing a 145% tariff on Chinese goods as part of the ongoing US-China trade war. In retaliation, China imposed a 125% tariff on US goods.

As a result, the crypto market has witnessed a significant downturn, with the trade war creating much uncertainty in the market. However, with Trump indicating that he is looking to end this trade war, the crypto market could witness a massive rebound once both countries reach an agreement.

It is worth mentioning that the Bitcoin price sharply rallied this week on the back of the news that China is looking to reach an agreement with the US.

The Consolidation Phase Could Soon End

Crypto analyst Kevin Capital suggested that the consolidation phase for the crypto market could end soon. In an X post, he stated that everything is going according to plan and that the market is nearing the end of its consolidation phase.

The analyst alluded to a previous post in which he stated that the correctional period is not over yet, but assured that it was getting close. Back then, he remarked that the question is not whether it will end, but rather when it ends and how strong the bounce will be. The analyst added that the focus would be on whether Bitcoin makes new highs or a lackluster lower high, followed by a bear market.

He stated that this will also be trackable through other methods, such as money flow, macro fundamentals, and overall spot volume. As part of the macro fundamentals, market participants will also have their eyes on the Federal Reserve’s next move.

Fed Chair Jerome Powell also recently suggested that they have no plans to lower interest rates anytime soon. However, Bank of America has predicted that there will be four Fed rate cuts this year, with the first coming at the May FOMC meeting.