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  • Bitcoin drops below $84k as markets react to tariffs

    Bitcoin drops below $84k as markets react to tariffs

    BTC on stack of cryptocurrencies with falling crashing graph in background

    • Bitcoin price fell to lows of $82,131, dipping to levels seen in November 2024.
    • The BTC sell-off happens after Trump’s latest tariffs announcement, including a 25% tarriffs on the EU.
    • Equities also dumped, with the S&P 500 seeing $500 billion wiped off.

    The price of Bitcoin dropped more than 6% in 24 hours to break below $84,000 on Wednesday.

    Notably, Bitcoin price has touched its lowest levels since November 2024, when it rose amid election momentum. According to crypto and stocks trader IncomeSharks, the market is bearish.

    BTC sold-off as the crypto market reacted to trade war sentiment, with this coming on the heels of the latest tariffs announcement by President Donald Trump.

    Having announced that the 25% tariffs on Canada and Mexico and 10% on China will go into effect in April, Trump said he would slap 25% tariffs on the European Union. The news saw the S&P 500 fall, with over $500 billion in market cap wiped off.

    Bitcoin dips amid ETFs outflows

    As equities reacted to the potential trade war, Bitcoin crashed below $84,000. Per data from CoinMarketCap, the price of BTC hit lows of $82,131.

    BTC price also dumped amid massive selling pressure from ETFs. Major issuers Fidelity, Ark and Grayscale all sold. BlackRock, which sent millions of dollars worth of BTC and ETH to an exchange on Tuesday, also offloaded $150 million of the flagship coin.

    While bulls had rebounded to above $84k at the time of writing, sentiment remains weak and a retest of $80k is possible. Crypto analyst Rekt Capital shared the chart below.

    According to analysts, the markets are pricing in a possible “rebound in inflation” with investors factoring in likely spikes in the prices of goods.

    “What’s interesting is the SHARP divergence between Gold and Bitcoin since the trade war began. While Gold is up +10%, Bitcoin is down -10%, even though Bitcoin is historically viewed as a “hedge” against uncertainty,” the Kobeissi Letter said.

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  • Bitcoin price surges to $26K as bulls react to CPI data

    Bitcoin price surges to $26K as bulls react to CPI data

    • Bitcoin price hit highs of $26,553 on Coinbase, with 16% upside in 24 hours.
    • US inflation data showed CPI rose 6% in the past 12 months in February.
    • On-chain data suggests BTC price could rally to $30,000 in the short term.

    Bitcoin rose sharply on Tuesday, breaking past $26,000 as the crypto market reacted positively to the latest Consumer Price Index (CPI) data by the US Department of Labor.

    Bitcoin breaks $26k amid market reaction to CPI data

    According to data from TradingView, the price of Bitcoin spiked 16% to highs of $26,553 on the cryptocurrency Coinbase. 

    Bitcoin price rallied above $26,000 on Tuesday. Chart courtesy of TradingView

     As noted yesterday, BTC price soared from lows of $20,000 to break above $24,000 – the bullish sentiment buoyed by the US government’s actions in the wake of Silicon Valley Bank’s collapse.

    On-chain data shared by market research platform IntoTheBlock shows Bitcoin faces minimal selling pressure to around $30,000.

    The aggregate market data from CoinGecko showed the total crypto market cap has surged by more than 14% as major altcoins like Ethereum and BNB hit highs of $1,750 and $315 respectively.

    Per the US Department of Labor, CPI rose 0.4% in February and 6% over the last year to align with market expectations. Notably, the data showed US inflation had increased at its slowest pace since September 2021. The core CPI, which strikes off the more volatile food and energy items, increased by 5.5% to also fall within expectations.

    Stocks also opened higher on Tuesday, with the S&P 500 up 1.5% as investors turned attention to the Federal Reserve and its interest rates path. Market analyst Carl Quantanilla points out this scenario.

    The Dow Jones Industrial Average had added 320 points, or 1%, while the Nasdaq Composite was up 1.7% at 9:50 am ET.

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  • Bitcoin, stocks swing as markets react to CPI data

    Bitcoin, stocks swing as markets react to CPI data

    • Bitcoin price was trading sideways after hitting highs of $22,300, with major US indexes also down.
    • The markets’ reaction comes after hotter-than-expected inflation data for the first month of 2023.
    • US CPI rose 0.5% over the month and 6.5% year-over-year.

    Bitcoin was holding just above $22,000 at around 11:00 am ET, with the flagship cryptocurrency having swung from highs of $22,300 as the broader crypto market mirrored Wall Street following Tuesday’s US inflation data.

    Across crypto, Ethereum first ticked closer to $1,570 across major exchanges, rising as much as 5% before the upside cooled to see ETH trade near $1,540 at the time of writing. A similar picture held for Binance Coin, with BNB nearing $300 with about 3.5% in gains before shedding some of the gains.

    The action across US stocks also had the major indexes in the green premarket, before broader reaction to consumer price data released on Tuesday saw the major indexes trade lower.

    The S&P 500 rose nearly 0.7% but had flipped negative after the latest Consumer Price Index (CPI) data from the US Bureau of Labor Statistics showed inflation picked up over the past one month after consecutive months of declines. The S&P 500 was down 0.6% at the time of this report.

    The outlook was similar for the Dow Jones Industrial Average and the Nasdaq Composite, which were down about 0.8% and 0.6% respectively.

    Markets react to January CPI data

    On Tuesday morning, the US government’s data on inflation showed consumer prices rose 0.5% in January and 6.4% over the past twelve months, higher than the forecast 6.2%. 

    Even for the Core CPI, which leaves out the more volatile food and energy components, the readings were 0.4% in January and 5.6% year-over-year.

    The data thus showed inflation had picked up in the first month of 2023, coming in hotter than economists expected, with Wall Street reacting lower on the news as investors weigh what this means for the Fed’s interest rates path. Market observers say this could point to a higher for longer path that the Fed has previously pointed out.

    Tim Seymour, the CIO of Seymour Asset Management certainly thinks this could be on the cards now.

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