Both cryptocurrency and traditional markets will be pressured by global trade war concerns until at least the beginning of April, but the potential resolution may bring the next big market catalyst.

Bitcoin’s (BTC) price fell over 17% since US President Donald Trump first announced import tariffs on Chinese goods on Jan. 20, the first day after his presidential inauguration.

Despite a multitude of positive crypto-specific developments, global tariff fears will continue pressuring the markets until at least April 2, according to Nicolai Sondergaard, research analyst at Nansen.

The research analyst said during Cointelegraph’s Chainreaction daily X show on March 21:

“I’m looking forward to seeing what happens with the tariffs from April 2nd onwards, maybe we’ll see some of them dropped but it depends if all countries can agree. That’s the biggest driver at this moment.”

The Crypto Debanking Crisis: #CHAINREACTION https://t.co/nD4qkkzKnB

— Cointelegraph (@Cointelegraph) March 21, 2025

Risk assets may lack direction until the tariff-related concerns are resolved, which may happen between April 2 and July, presenting a positive market catalyst, added the analyst.

President Trump’s reciprocal tariff rates are set to take effect on April 2, despite earlier comments from Treasury Secretary Scott Bessent that indicated a possible delay in their activation.

Related: Ether risks correction to $1.8K as ETF outflows, tariff fears continue

Fed’s interest rates are also contributing to market slump

High interest rates will also continue pressuring risk appetite among investors until the Federal Reserve eventually starts cutting rates, explained Sondergaard, adding:

“We’re waiting for the Fed to see proper “bad news” before they will really start cutting rates.”

Markets are currently pricing in an 85% chance that the Fed will keep interest rates steady during the next Federal Open Market Committee (FOMC) meeting on May 7, according to the latest estimates of the CME Group’s FedWatch tool.

Related: Crypto debanking is not over until Jan 2026: Caitlin Long

Still, the Federal Reserve indicates that inflation and recession-related concerns are transitory, particularly regarding tariffs, which may be a positive sign for investors, according to Iliya Kalchev, dispatch analyst at Nexo digital asset investment platform.

“Markets may now expect upcoming economic data with greater confidence,” the analyst told Cointelegraph, adding:

“Cooling inflation and stable economic conditions could further boost investor appetite, driving additional upside for Bitcoin and digital assets.”

“Keep an eye on key reports, including Consumer Confidence, Q4 GDP, jobless claims, and next week’s crucial PCE inflation release, to gauge the likelihood of future rate cuts,” the analyst added.

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Stablecoin issuer Tether is reportedly engaging with a Big Four accounting firm to audit its assets reserve and verify that its USDT (USDT) stablecoin is backed at a 1:1 ratio.

Tether CEO Paolo Ardoino reportedly said the audit process would be more straightforward under pro-crypto US President Donald Trump. It comes after rising industry concerns over a potential FTX-style liquidity crisis for Tether due to its lack of third-party audits.

Tether to produce first full audit after scrutiny

“If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen, so we are very happy with that,” Ardoino told Reuters on March 21.

“It’s our top priority,” Ardoino said. It was reported that Tether is currently subject to quarterly reports but not a full independent annual audit, which is much more extensive and provides more assurance to investors and regulators.

However, Ardoino did not specify which of the Big Four accounting firms — PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG — he plans to engage.

Tether’s USDT maintains its stable value by claiming to be pegged to the US dollar at a 1:1 ratio. This means each USDT token is backed by reserves equivalent to its circulating supply. 

These reserves include traditional currency, cash equivalents and other assets.

Earlier this month, Tether hired Simon McWilliams as chief financial officer in preparation for a full financial audit.

Industry concerns over Tether’s lack of audits

In September 2024, Cyber Capital founder Justin Bons was among those in the industry who voiced concerns about Tether’s lack of transparency.

“[Tether is] one of the biggest existential threats to crypto. As we have to trust they hold $118B in collateral without proof! Even after the CFTC fined Tether for lying about their reserves in 2021,” Bons said.

Related: Tether freezes $27M USDT on sanctioned Russian exchange Garantex

Around the same time, Consumers’ Research, a consumer protection group, published a report criticizing Tether for its lack of transparency.

Just three years prior, in 2021, the United States Commodities and Futures Trading Commission (CFTC) fined Tether a $41 million civil monetary penalty for lying about USDT being fully backed by reserves.

Meanwhile, more recently, Tether has voiced disappointment over new European regulations that have forced exchanges like Crypto.com to delist USDT and nine other tokens to comply with MiCA.

“It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves,” a spokesperson for Tether told Cointelegraph.

Cointelegraph reached out to Tether but did not receive a response by time of publication.

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The following is a guest post from Maksym Sakharov, Co-Founder & Group CEO of WeFi. The current markets are experiencing tailwinds due to the tariffs imposed by the U.S. administration and retaliatory measures from trading partners. So far, however, the market proponents are saying that Trump’s tariffs are primarily a negotiation strategy, and their effect […]

The post Dollar-pegged stablecoins are a hedge against volatility appeared first on CryptoSlate.

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Venture capital firm Haun Ventures is reportedly looking to raise $1 billion for two new crypto-related investment funds within the next three months.

If successful, $500 million will be allocated to early-stage crypto investments, while the remaining $500 million will go toward late-stage crypto investments, people familiar with the matter told Fortune Crypto on March 21.

Different market conditions to 2022 led to lowered expectations

The VC firm, founded by former Coinbase board member and federal prosecutor Katie Haun in 2022, reportedly did not aim for the $1.5 billion it raised in its highly praised funding round in 2022. It cited different market conditions as the reason for the lower target.

However, Haun reportedly expects the two new funds will be “oversubscribed.” In March 2022, Haun secured $1.5 billion in the company’s first funding round, shortly after its launch. Haun had also recruited former executives from Airbnb, Coinbase and Google tech incubator Jigsaw.

The firm’s latest fundraising round is set to close in June and is expected to be one of the largest in crypto funding in the past two years. Venture capital firm Paradigm and digital asset investment manager Pantera Capital both sought similar amounts in 2024.

In June 2024, Paradigm closed an $850 million investment fund, while in April, digital asset investment manager Pantera Capital sought to raise over $1 billion for a new blockchain-focused fund.

VCs predict that stablecoins will continue to be a focus in 2025

More recently, Haun Ventures participated in crypto asset management firm Bitwise’s $70 million funding round alongside investors such as Electric Capital, MassMutual, MIT Investment Management Company, and Highland Capital.

While the specific focus of Haun’s upcoming crypto funds is not publicly known yet, other venture capitalists have recently predicted that stablecoin interest will continue into 2025.

Related: Venture capital firms invest $400M in TON blockchain

Deng Chao, CEO of institutional asset manager HashKey Capital, recently told Cointelegraph that stablecoins were the strongest proven use case for crypto in 2024.

Meanwhile, market analyst Infinity Hedge predicted that crypto VC investment in 2025 would surpass last year’s levels but wouldn’t approach the peak recorded during the 2021 bull market. VC crypto funding in 2021 reached $33.8 billion, while in 2024 it reached $13.6 billion.

Cointelegraph reached out to Haun Ventures but did not receive a response by time of publication.

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