Bitcoin Price Drops Below $84K Amid Inflation Fears and Trade Turmoil
Bitcoin’s price fell to $83,544 amid market turbulence caused by Trump’s tariffs and rising inflation fears. The overall crypto market dropped 4.14% to $2.73 trillion, mirroring traditional financial markets. The CFGI reflects a state of ‘fear’ among traders, highlighting the complexities and challenges faced in today’s economic landscape.
On Friday, Bitcoin’s value plunged to $83,544, significantly impacted by turmoil in financial markets following former President Trump’s proposed tariffs on pharmaceutical companies. Additionally, March’s consumer sentiment data suggested the highest long-term inflation projections in over thirty years, intensifying the market’s instability.
The cryptocurrency market mirrored the performance of U.S. equities, which faced an abrupt decline near the end of the trading session. This downturn was driven by March’s consumer sentiment, new inflation metrics, and renewed trade tensions fostered by the Trump administration, collectively resulting in substantial financial disruption.
The total crypto economy’s valuation fell by 4.14% to settle at $2.73 trillion, with Bitcoin accounting for 61% of this figure. The leading digital asset struggled to maintain momentum, dipping to an intraday low of $83,544. Despite this, Bitcoin’s trading volumes remained notable, reaching $31.53 billion of a total global trading volume of approximately $91.4 billion.
The Crypto Fear and Greed Index (CFGI) signaled a “fear” rating of 33 out of 100, indicating heightened anxiety among investors. Popular trading pairs for Bitcoin included USDT, FDUSD, USD, USDC, and EUR, with South Korean currency also representing a significant portion. Upbit, a major trading platform in South Korea, listed BTC at $85,113 at 4:45 p.m. ET, contrasting with a global average of $83,883.
Data from Coinglass indicated derivatives liquidations amounting to $445.25 million on that day, with long Bitcoin positions contributing $107 million. Price fluctuations for Bitcoin increasingly reflect the movements of Wall Street, underscoring its integration with traditional finance amid macroeconomic uncertainties and geopolitical tensions.
While Bitcoin’s overall market share and liquidity suggest resilience, the CFGI’s assessment of “fear” illustrates the caution of traders responding to inflation challenges and regulatory changes. The unwinding of mass derivatives mirrors the challenges of an evolving ecosystem, with speculative tendencies battling against underlying structural vulnerabilities as participants navigate a complex financial landscape.
In summary, Bitcoin’s recent decline below $84,000 is indicative of various compounding factors, including trade tensions stemming from proposed tariffs and significant inflation concerns. The crypto market’s alignment with traditional financial indices shows its increasing entanglement with macroeconomic dynamics. Despite signs of resilience, traders remain apprehensive amid rising inflation and shifting regulatory conditions, reflecting evolving challenges within this asset class.
Original Source: news.bitcoin.com
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