BTC Bears Target 200-day Average as Macro Concerns Overshadow Trump’s Crypto-Related Actions
Bitcoin (BTC) bears intensified their attack on key support levels this past Sunday, as the flagship cryptocurrency extended its downward trend for three consecutive days. Economic worries have overshadowed the aftermath of President Donald Trump’s announcements related to cryptocurrency, pushing BTC to a slight decline of over 3%, settling at around $83,200. This current dip follows a more significant slide of over 10% from its recent peak just above $92,800, recorded on Thursday.
The latest downturn coincides with escalating trade tensions between the U.S. and China, which are set to intensify with new tariffs imposed by Beijing on selected U.S. agricultural goods. These tariffs are a direct response to Trump’s recent hike on Chinese imports, creating heightened uncertainty in the markets and for financial policymakers alike.
Federal Reserve Chairman Jerome Powell further compounded the worries on Friday by reaffirming the central bank’s cautious approach to interest rates. His remarks came in the wake of disappointing U.S. nonfarm payrolls data and contributed to speculation around potential rate cuts from the Fed—up to three expected this year. Observers note that these overarching macroeconomic factors have diverted investors’ attention from Trump’s recent strategic announcement concerning a BTC stockpile, perceived initially as positive news.
According to analytics firm IntoTheBlock, the drop in Bitcoin’s value—witnessed as prices plummeted from $90,000 to below $87,000 shortly after the announcement—suggests that any optimism about Trump’s involvement in the cryptocurrency realm has been overshadowed by looming tariff war concerns. The firm’s latest newsletter highlighted the increasing strength of the correlation between Bitcoin, ether, and U.S. stock performance, which appears to be negatively affected by fears stemming from the trade war.
Trump’s further comments, indicating a lack of concern about stock market movements and a focus on lower long-term interest rates, have raised questions about the feasibility of a bullish market under his administration. Investor expectations may have been overly optimistic regarding the impact of Trump’s policies on market performance.
Noelle Acheson, an authority on macroeconomic influences in cryptocurrency markets, pointed out in her latest analysis that Bitcoin’s disappointing price action following the strategic stockpile announcement emphasizes the weight of macroeconomic concerns on crypto assets.
Figures from the daily price chart suggest that buyers had previously stepped in just below the 200-day simple moving average (SMA), notably seen on February 28 and March 2, indicating that the market is poised to closely monitor this level for potential reversal in trading dynamics. As traders remain vigilant, this developing narrative within the broader economic landscape will continue to shape the trajectory of Bitcoin and possibly other cryptocurrencies moving forward.
