Bitcoin Price Remains Stable Despite Significant U.S. Market Retreats
Bitcoin maintains stability above $96,550 as major U.S. stock indices, including the S&P 500 and Nasdaq 100, fell sharply. Concerns surrounding economic tariffs and the Federal Reserve’s policy heighten market risk, while technical patterns indicate a potential bullish reversal for Bitcoin.
The price of Bitcoin remained resilient, trading above $96,550, amidst significant declines in major U.S. stock indices and exchange-traded funds. Following a particularly tumultuous trading day, the blue-chip S&P 500 index saw a decline of 1.71%, and the tech-heavy Nasdaq 100 dropped by 2%, erasing a total of 455 points. The Dow Jones and the Russell 2000 also experienced losses of 1.70% and 3%, respectively, while the Schwab US Dividend Equity ETF, known as SCHD, decreased by 0.5%, reflecting the broader market downturn.
In the background, multiple technology stocks such as Nvidia, Apple, Microsoft, and Meta Platforms contributed to the losses, highlighting the sector’s vulnerabilities. Investor sentiment, as measured by the CNN Money fear and greed index, remained in the fear zone at 35. Conversely, the crypto fear and greed index shifted to the greed area at 38, signaling a varied outlook in the cryptocurrency market.
Rising concerns over economic tariffs imposed by President Donald Trump and a hawkish stance from the Federal Reserve have fueled market anxiety. Recent Fed minutes indicated a preference among officials to maintain a restrictive economic policy due to persistent inflation rates, which recently rose to 3% and 3.3%. Historically, Bitcoin and cryptocurrencies tend to thrive under a dovish Federal Reserve, experiencing declines during rate hikes but rebounding when policy shifts towards supporting growth.
Investors are particularly wary of the potential implications of tariffs, which may induce stagflation—characterized by high inflation coupled with stagnant economic growth. Existing tariffs on Chinese imports, and upcoming levies on Canadian, Mexican, and European goods, could exacerbate these conditions. Evidence suggests that excessive tariffs often hinder economic momentum while simultaneously elevating inflation rates.
On a more optimistic note, technical analysis suggests that Bitcoin may stage a significant rebound in the near term. The weekly chart displays the formation of a bullish flag pattern, which traditionally precedes robust price breakouts. Additionally, Bitcoin’s former cup-and-handle pattern, characterized by a depth of approximately 78%, implies a potential price target of around $121,590, based on measured projections from the pattern’s upper boundary.
In summary, despite recent declines in U.S. stock indices, Bitcoin’s price has demonstrated resilience. Market dynamics, driven by economic tariffs and Federal Reserve policies, have raised investor concerns. Nevertheless, bullish technical formations suggest a possible strong recovery for Bitcoin in the near future, potentially reaching significant price targets.
Original Source: crypto.news
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