Bitcoin gained 3% in value over the past week. However, despite this positive movement, the overall market remains clouded by uncertainty. Global economic instability is forcing traders to act cautiously, with U.S. trade policy being a key concern. The recent increase in import tariffs has impacted not only major economies like China but also neighboring countries.
The Fear and Greed Index currently signals a dominance of fear among investors. While this could hint at early signs of a market recovery, the situation remains fragile and influenced by a range of macroeconomic factors.
Experts emphasize that the Federal Reserve’s monetary policy decisions will play a central role in shaping the crypto market. In comparison, U.S. trade actions are expected to have a secondary impact.
According to Morgan Stanley analyst Mike Wilson, the movement of major cryptocurrencies will be affected not only by U.S. tariff measures but also by inflation trends and consumer spending. Significant shifts in these areas could lead to heightened volatility in the crypto space.
Investor appetite for high-risk assets appears to be declining. Most analysts agree that a sustained bull market is unlikely in the near future, as there are currently no strong fundamental drivers. At the same time, a renewed wave of selling pressure from large holders cannot be ruled out.
