The spark in the cold winter of crypto: liquidity will be injected into the market in the third quarter, and BTC hits a new high at the end of the year?

Original title: This is where crypto insides 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/

Translated by: Daisy, Mars Finance

Cryptocurrency insiders predict the next trend of the market

• The total market value of cryptocurrencies evaporates by 12% in the past week
• The following are industry insiders' predictions on market trends

Prepare for the pain period

This basically summarizes the core views of cryptocurrency industry stakeholders and analysts after Trump’s tariff policy triggered a week of evaporation of market value of approximately 12% ($335 billion) in the entire cryptocurrency market.

At least this is their judgment on the short-term trend. Traders still seem to have hope in the long run

"The market sentiment is tense but not completely pessimistic," Timo Lehes, co-founder of cryptocurrency trading platform Swarm Markets, told DL News. "The macroeconomic pressure and regulatory uncertainty continue to be pressured, but the stubborn optimism unique to cryptocurrency practitioners has alleviated this pressure."

He shared insights with other experts as the U.S. president takes effect on Wednesday's full tariffs on dozens of countries

Short-term pain

Risk assets such as cryptocurrencies and technology stocks have been particularly hit in this round of market downturn. The Nasdaq 100, dominated by technology stocks, has fallen by about 11% in the past week

"This type of macro uncertainty often triggers risk aversion reaction, and investors will withdraw funds and wait and see growth, policy and trade situation development," said Deng Weizheng, CEO of cryptocurrency exchange Binance, in a statement.

Bitcoin fell 9% to around $77,000 in the past seven days, but Joel Kruger, a cryptocurrency trading strategist at LMAX Group, believes it may fall below the $70,000 mark

Long-term bullish

Industry insiders remain optimistic in public comments, despite traders preparing for further declines

Market observers such as BitMEX co-founder Arthur Hayes bet that the Fed will respond to the crisis by allowing more funds to flow in the U.S. economy. If the Fed does, he expects Bitcoin to reach $250,000 by the end of the year

The first clue of the Fed's reaction will be revealed when the minutes of the March meeting were released on Wednesday, which will be held before Trump announced tariffs on April 2

"Any hint that shows the Fed's tendency toward a looser policy track could bring positive stimulus to markets including cryptocurrencies," Kruger said

The CME FedWatch tool shows that the probability of the Federal Reserve cutting interest rates in May is 54%, and the probability of the rate cut in July is 96%. Rate cuts usually stimulate investment in risky assets

"There will be some rate cuts and market liquidity injections this year," Alice Liu, head of research at cryptocurrency data company CoinMarketCap, told DL News, "the specific intensity or the exact timing depends on the power game between the Federal Reserve and the Trump administration."

Her prediction? These measures will be implemented by the third quarter, pushing Bitcoin to new highs, she said

"We will witness new all-time highs by the end of the year," she said