What Key Indicators Can Cause a Reverse of Crypto’s Bearish Trend

The market is bleeding, and the question remains: “Is 2025 still a supercycle?” The emergence of a pro-crypto president and fresh people at the U.S. Securities and Exchange Commission helms already set this year up for an explosive takeoff. With prices of major cryptocurrencies falling, things are already looking good for investors. However, there are some indications that can cause a reverse of crypto’s bearish trend.

Since the inauguration, the market has yet to take a break. What about the gains of the Strategic Bitcoin Reserve? The market has gobbled everything. The good news about the SBR is that the law is getting attention on the state level and recent adopters include Oklahoma, Texas, Arizona, and Utah. Now, the next big event is the tariff schedule announcement, set for April 2nd. Prices are responding to positive reports as BTC plays close to 90k.

Investors hope their optimism pays off this time and a good run of events follows. Over the past three months, Bitcoin has dipped by almost 10%. On the other hand, stablecoins have surpassed $220 billion in market cap and are showing no signs of stopping. It is safe to assume that investors buy into low-risk assets to bid entries into more volatile assets. Crypto is not done, after all.
This article will explore key indicators that show an imminent reverse of crypto’s bearish trend. Here are four reasons the market will soon start living up to expectations.

Let us dive in!

Key indicators that could cause a reverse of crypto’s bearish market

Regulatory stance on stablecoins

The poster child for stablecoin regulation, the Genius Act is very much under consideration in the U.S. Congress. Right now, it seems the act can go into law anytime soon. Speculators have cast doubts over how stablecoins are issued and used in transactions.

The Genius Act will boost the adoption of dollar-backed stablecoins with numerous advantages. This move leads to a reverse of crypto’s bearish trend and gives the industry much-needed legitimacy to thrive. Investors can trust price stability in transactions amid currency fluctuations common in developing countries.

Also, stablecoins will transform digital payment solutions to enable quick fulfillment in cross-border transactions. So, more businesses will move from credit card routes, which are wrought with various difficulties, to easy digital choices.

SEC settled lawsuits against major crypto exchanges

The SEC is taking a new shape under acting Chairman Mark Uyeda. Aside from dropping past strict officials like flies, the SEC is settling ongoing lawsuits against crypto companies. This house cleaning helps the indicted groups focus on growing the sector and take advantage of a government looking to define digital assets.

On February 27th, the SEC dismissed its lawsuit against Coinbase. The litigation tussle, which began in 2023, alleges the exchange violated some securities laws. The U.S. agency admitted that the dismissal is one step in rectifying its approach to crypto policy and embracing transparency in dealing with digital asset companies. Uyeda emphasized that this move will not impede the SEC in the war against fraud and other innovations that harm investors.

Recently, Ripple benefited from a renewed SEC. After a four-year-long battle, Ripple will pay a 50 million dollar fine, and the SEC will withdraw its appeal. On X, Ripple Chief Legal Officer Stuart Alderoty explained that the fine is in escrow accruing interest, but the SEC refuses to comment.

It is important to note that a notice from Ripple Chief Executive Officer Brad Garlinghouse about the appeal saw XRP soar by 10% to $2.55. This occurrence is only the beginning of the regulation reforms in the reversal of crypto’s bearish trend.

Federal Reserve interest rate cuts

While the Federal Reserve has kept interest rates between 4.25 – 4.5% for March, it will enforce two cuts before 2025 ends. A cut favors crypto as investors chase higher returns on riskier assets. Let us see how this works.
Interest rates are what it costs to borrow money, and central bank actions affect these rates. In the United States, the Federal Reserve sets a benchmark called the Federal funds rate. If it is low, it costs less to borrow money. The low price of money encourages people to borrow and go into debt, expecting to reinvest the loan into opportunities with returns that beat the rates. Monetary supply goes up, and inflation creeps in.

When rates are otherwise high, borrowing becomes expensive, and people are cautious about owing, and inflation is kept at bay.
Rate cuts make investing in cryptocurrencies appealing. Although risky, the allure is greater with scarce and high-yield tokens. Investors are willing to take this chance over choosing stable yields like government bonds. Within the crypto market, low interest rates translate to more inflows and long-lasting leveraged positions.

Impending international trade tariffs

It is no news that there are rising trade tensions between the U.S. and Mexico, China, and Canada — the list goes on. This uncertainty has impacted Bitcoin price, pulling it below the 80k mark.

Historically, April does well for Bitcoin. However, to repeat its familiar pattern, the digital gold must push through the 90k resistance before the market can expect further upside.

President Trump vows to roll out fresh tariffs to quiet recession fears by April 2nd. He has emphatically called it Liberation Day and believes the expected reciprocal tariffs will smoothen U.S. trade relationships.

How do tariffs affect crypto?
In many countries, cryptocurrencies are considered commodities. Commodities respond to economic trends and powerful tools like tariffs. If the April 2nd schedule is favorable, crypto goes up from here.

What are experts saying about the reverse of crypto’s bearish trend?

Can BTC go lower?
Since Trump’s inauguration, Bitcoin has gone on a downward spiral, and there are sentiments about whether the fall is over. Here is what some experts think:

• Bitmex Co-founder Arthur Hayes believes Bitcoin has reached its bottom and will revisit the 100k mark rather than dip to the 76k region.
• Compass Point analysts Ed Engel and Joe Flynn suggest crypto looks its strongest since February. With increasing inflows for Bitcoin ETFs, the market is looking up. Summarily, they think the Bull cycle is very much in play.
• Meanwhile, Federal Reserve chair Jerome Powell takes a guarded approach to rate cuts because it is hard to predict inflation with upcoming tariff news.

Conclusion

A quarter of the year is gone, and there is little to be said about growth in crypto so far. When it seems prices are back on track, setbacks from various economic standoffs send them back to the gutters. This start-stop pattern causes many to wonder. Is there even a bull cycle?

While the outlook is gloomy, certain events can push the market towards early projections. The long-awaited act that okays stablecoin control is making progress in Congress. Ongoing litigation cases against major cryptocurrency companies are getting resolved as the SEC looks to define digital assets within the financial system.

While inflation should stay around 2%, the Federal Reserve envisions further rate cuts that will drive more funds toward crypto. Also, tariff debates will soon cool as Trump will roll out fresh rates next week, suggesting it will be a day of liberation. So, 2025 is still on the cards for the bulls!

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