Crypto investors are disappointed by the lack of progress in the creation of a U.S. Bitcoin reserve, and Donald Trump’s statements on trade tariffs have raised concerns. These conclusions were made by industry experts.

SkyBridge Capital CEO Anthony Scaramucci noted that Trump’s unpredictable behavior will lead to short-term “turbulence” in the market, but in the long run, Bitcoin and cryptocurrencies as a whole will emerge “victorious.”

According to trader and Fidenza Macro newsletter author Geo Chen, in anticipation of the development of “trade wars,” market participants will avoid risks. Many crypto assets could lose up to 50% of their price compared to January’s highs, but a recovery will follow later.

“In the end, [tariffs] will be reduced (but not to zero), and the market will ‘digest’ them and recover (as it did in 2018). Cryptocurrency will recover because we are not at the end of the bull cycle yet,” Chen emphasized.

QCP analysts noted that the recent press conference of “crypto czar” David Sachs disappointed market participants. Experts called the development of cryptocurrency legislation and the prospect of creating a Bitcoin reserve in the U.S. long-term positive factors. However, they also pointed out short-term challenges for digital gold:

“Bitcoin remains resilient, but geopolitical risks and the lack of crypto-specific catalysts make the markets fragile. Given the large liquidations earlier this week, expect continued volatility. Risk management is a key factor.”

Bitwise portfolio manager Jeff Park believes that Trump’s tariff policy goal is to weaken the dollar without increasing long-term interest rates. In his opinion, the high cost and demand for the dollar on the global market “forces the U.S. to maintain a constant trade deficit to supply the world with dollars.”

“One way to achieve this is to force countries to reduce their dollar reserves while extending the maturity of their treasury debt. This would suppress long-term interest rates while supporting the U.S. manufacturing base,” Park noted.

He added that the subsequent weakening of the economy will lead to the issuance of additional money by U.S. authorities, which “has always been a good stimulus” for the first cryptocurrency.

It is worth noting that in February, analyst and MN Trading founder Michaël van de Poppe predicted high volatility in the Bitcoin market and pointed to a possible ATH within the month.