Bitcoin Faces April Volatility Amid Tariff Uncertainty, Analysts Warn

K33 analysts have forecasted a period of heightened market volatility for April, with Bitcoin expected to remain within a consolidation range of $75,000 to $88,000. This prediction comes amidst a backdrop of increasing tariff expectations, which are anticipated to significantly impact market dynamics. The analysts, Vetle Lunde and David Zimmerman, highlighted that tariffs remain the primary factor influencing market movements. They noted that the defensiveness of traders, as evidenced by a drop in the futures premium to 5% and a significant decrease in open interest, reflects the market's cautious stance. Additionally, the offshore perpetual futures financing rate has not reached or exceeded the neutral level for the past 69 days, further indicating market apprehension.

The analysts' report underscored the potential for increased market volatility throughout April, driven by the anticipated tariff announcement. They emphasized that the correlation between stocks and Bitcoin will remain high, suggesting that any market movements in one asset class could have a ripple effect on the other. The most likely scenario, according to the analysts, is that Bitcoin will continue to consolidate within the $75,000 to $88,000 range as the market navigates through the uncertainties posed by the tariff situation. They also cautioned that the market may not see clarity and certainty even after April 2, as various responses, negotiations, and unexpected situations could unfold throughout the month.