Bitcoin price at risk as cooling CPI data fails to offset Trump tariff concerns

Bitcoin could continue to slide like cooler than expected American inflation data has sparked fears that President Trump can go stronger on prices, a decision that could really bring back inflation in the long term.

Friday, Bitcoin (BTC) fell below $ 80,000 and has always dropped by around 1.6% in the last 24 hours at the time of the press. It came even if the American consumer price index (ICC) for Mars has shown Inflation fell to 2.4%Against 2.8% in February and slightly better than the 2.5% provided by analysts.

The IPC, published monthly by the American Bureau of Labor Statistics, is a key inflation gauge and influences the decisions of monetary policy of the Federal Reserve. Normally, lower inflation reduces the need for rate increases, which tends to benefit from risk assets such as crypto and stocks.

However, despite the positive reading of the IPC, the markets have not rallied. The S&P 500 and the Nasdaq openly open lower And closed the day down 3.4% and 4.3%, respectively.

The total market capitalization of cryptography has also dropped by 2.8% in the last 24 hours, which suggests that wider concerns eclipse all relief of the cooling of inflation.

Trump’s trade policies remain the main concern. On April 9, President Trump announcement A 90 -day break on planned pricing increases and introduced a reciprocal rate of 10% on most countries – but notably excluded China, where it has raised prices on Chinese imports to a stiff 125%, accusing Beijing not to respect global commercial standards.

This decision briefly calmed the markets, sending Bitcoin from more than 7% to $ 82,000 while investors welcomed the temporary softening of trade tensions.

However, this optimism quickly faded after China responded with 84% of the prices on American products from April 10. These reprisals have renewed the fears of an prolonged Chinese business war, which could weigh heavily on the confidence of investors, especially after the 90 -day window.

According to For experts from the letter from Kobeissi, the combination of a strong report on jobs and cooling inflation can actually give Trump more political place to further increase prices, which has potentially canceled the progress made on inflation.

At the same time, the probability that the federal reserve reduces short -term interest rates seems thin. Fedwatch of the CME group Tool Underlines an 81.5% chance that the Fed will hold stable rates at its May 7 meeting. In the absence of expected rate reductions before at least June, the macro backdrop remains uncertain for Bitcoin.

Bitcoin capital entries have also slowed down this year. Glassnode analysis platform recently reported The entries plunged more than 90%, going from a peak of $ 100 billion to only about $ 6 billion. As a rule, it is a sign that the interest of investors can be cooled down due to current uncertainty.

Technical indicators also indicate a potential drawback. If Bitcoin does not hold the level of $ 80,000, Glassnod analysts warn that it could review the lower support areas, perhaps the exponential average of 356 days at $ 76,000.

The following key levels to monitor below this price are the price made active at $ 71,000, and if things aggravate, the real market means almost $ 65,000. These are major support areas where long -term holders generally intervene. But if BTC loses this scope, it could mean more decline in advance.

Analysts remain full of hope

However, not everyone considers the recent decline in Bitcoin as a sign of weakness. Some analysts argue that Bitcoin is remarkably well compared to traditional markets.

While the volatility carried out of seven days of Bitcoin has doubled at 83%, it remains significantly lower than that of S&P 500, a development which refers to the potential evolution of assets in low beta coverage against traditional actions. On a 30 -day basis, Bitcoin seems in particular less volatile than the S&P 500.

Adding to this, some chain data suggest that the biggest players buy the decline.

According to Santiment, 132 new “Shark” portfolios, those that hold more than 10 BTCs, have appeared in the last 24 hours.

Cryptochant’s data also show that around 48,575 BTC, worth around 3.6 billion dollars, went to accumulation wallets. It is the greatest activity of whales observed since 2022, which could mean that the main holders are positioned for a longer term game, even if short -term uncertainty persists.

That said, while many are still on board, others are starting to see signs of potential recovery from the graphics.

According to For Merlijn the merchant, Bitcoin has just finished a double -bottomed pattern, which is a classic sign of a trend reversal. Now that it is traded over $ 81,000 and has already rebounded on the level of $ 79,900, a potential escape could be on the horizon with rising targets around $ 86,000.

If BTC manages to publish a weekly fence greater than $ 86,000, some analysts think that it could open the way for bulls to target $ 94,000. See below:

However, unless a form of resolution is reached between the United States and China, this rope shot on the prices will probably continue to drag on the markets.