Despite Trump’s crypto moves, macroeconomic concerns and the ongoing tariff war weigh heavily on Bitcoin’s price.
Bitcoin Drops Below $83K Amid Market Uncertainty
Bitcoin (BTC) extended its three-day decline on Sunday, dropping over 3% to $83,200 and testing the 200-day simple moving average (SMA). The cryptocurrency has lost more than 10% since reaching highs of $92,800 last Thursday, with market sentiment shifting away from President Donald Trump’s recent pro-crypto initiatives.
Tariff War Overshadows Crypto Optimism
The latest downturn coincides with escalating trade tensions between the U.S. and China, set to intensify as Beijing prepares to impose tariffs on American agricultural products. Investors remain cautious as the tariff dispute creates economic uncertainty, overshadowing Trump’s announcement of a strategic Bitcoin reserve.
Federal Reserve’s Stance Adds to Market Caution
Federal Reserve Chairman Jerome Powell reiterated the central bank’s cautious approach to interest rate cuts, citing concerns about inflation and Trump’s policy shifts. With at least three rate cuts expected this year, recessionary signals from the bond market are drawing investor focus away from Bitcoin’s bullish potential.
Analysts: Bitcoin Struggles to Hold Support Amid Risk-Off Sentiment
According to IntoTheBlock, Bitcoin’s decline highlights growing investor anxiety. “Despite the very positive news, Bitcoin fell 4% from $90,000 to under $87,000 in hours. It appears focus on Trump’s crypto-related actions is increasingly secondary as tariff war fears accelerate,” the analytics firm noted.
Market Awaits Key Support Test
Bitcoin’s price chart indicates that buyers previously stepped in below the 200-day SMA on February 28 and March 2, leading to rebounds. Analysts are closely watching whether the same pattern will play out again or if further downside pressure will push Bitcoin lower.
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