The first quarter has practically ended, and we will soon wrap up March. The landscape of cryptocurrencies remains relatively unchanged. Recent U.S. consumer data indicates that fear is at a 12-month high, and inflation expectations are rising, putting us at a critical decision point. What can we expect for cryptocurrency forecasts in the coming days?
March End Cryptocurrency Predictions
As we concluded February, we anticipated that it should be a period of resolving knots. With the end of the month approaching, we are learning more about ongoing negotiations between the U.S. and its trade partners. Additionally, we should focus on the PCE data set to be released in the U.S. this Friday, which will provide insight into the current inflation situation.
The PCE, an inflation indicator for the Fed, gained significance following recent announcements. The U.S. Bureau of Economic Analysis (BEA) will publish the PCE report, which measures the prices consumers are paying for goods and services.
Experts at QCP Capital believe this data could serve as a crucial price catalyst by the end of March.
“As we approach this Friday’s quarterly futures expiration, we do not expect significant volatility driven solely by option positioning. However, attention will shift back to PCE inflation pressure, which could become the next major catalyst.”
April Predictions
As mentioned at the start, we see that the excessive fear regarding tariffs is being mitigated. The current status of BTC prices is benefiting from this, affirming our previous expectations since February.
“China will eventually have to sign a reasonable agreement with the U.S. due to steps taken by the EU, UK, Canada, Mexico, and others under U.S. pressure, and this must be mostly matured by April.”
By the end of February, President Trump hinted twice that trade partners might offer exemptions or discounts, making our predictions and recent price movements more meaningful.
Analyst Nicolai Sondergaard from Nansen expressed his anticipation for tariff developments starting April 2nd, suggesting that we might see reductions depending on whether all nations can reach an agreement.
Despite Trump’s tough rhetoric, he is likely to act more rationally in practical steps. Declaring April 2nd as Liberation Day, he will need to take significant actions without much backtracking. Therefore, decisive steps must be taken.
Updating our February predictions, we noted that January and February were periods of knot formations. March has seen heated negotiations aimed at resolving these knots. April should mark the beginning of a significant upward movement as global excessive fear dissipates.
