Bitcoin Bears Target 200-Day Average as Macro Concerns Overshadow Trump’s Crypto Announcements

Bitcoin recently dropped over 3% to $83,200, testing its 200-day average, amid escalating trade tensions and macroeconomic concerns overshadowing President Trump’s crypto announcements. The Federal Reserve’s cautious stance on interest rates further complicates market dynamics, prompting analysts to shift their focus from the President’s initiatives to broader economic indicators.

Bitcoin bears took aim at a critical support level this past Sunday, attempting to break through the 200-day simple moving average (SMA) as broader economic concerns overshadowed President Trump’s recent crypto announcements. The leading cryptocurrency fell over 3%, landing at $83,200, marking a significant drop from its peak above $92,800 just a few days prior. This three-day losing streak has left many investors anxious and uncertainty looms large.

Adding to the market’s anxiety, trade tensions between the U.S. and China are escalating. On Monday, Beijing will impose tariffs on certain U.S. agricultural goods in response to Trump’s latest hike on Chinese imports. Such developments are injecting considerable uncertainty into the financial landscape, spurring fears across various asset classes, especially riskier investments like Bitcoin.

On the Federal Reserve front, Chairman Jerome Powell spoke on Friday, reiterating the central bank’s cautious approach toward interest rates. This comes on the heels of a discouraging U.S. nonfarm payrolls report and predictions of at least three rate cuts this year. Discussions around tariff wars are stealing the spotlight from any positive chatter surrounding Trump’s crypto initiatives, including plans for a strategic Bitcoin stockpile.

Analytics firm IntoTheBlock noted in their latest newsletter that despite upbeat announcements, Bitcoin’s price plummeted almost 4% within hours, demonstrating a clear shift in investor sentiment. As tariff fears loom larger, the firm’s observations suggest that market confidence in a Trump-fueled crypto boom might be misguided.

Noelle Acheson, the author behind “Crypto Is Macro Now,” highlighted that Bitcoin’s declining value following the stockpile news is a stark reminder of how macroeconomic factors still dominate the market. Acheson pointed to recent patterns where buyers had entered below the 200-day SMA previously, signaling that traders might be attentive to this key level once more.

As this tumultuous week winds down, the interplay between macroeconomic pressures and crypto specifics will likely dictate Bitcoin’s movements in the near term. With the focus squarely on tariffs and interest rate policies, the market may continue responding more to economic indicators than to presidential announcements.

In summary, Bitcoin continues to experience turbulence as it faces downward pressure from macroeconomic concerns—particularly trade tensions and interest rate policies—rather than President Trump’s crypto actions. The emerging battle at the 200-day SMA is set against a backdrop of uncertainty, suggesting traders remain ever watchful for further signs of market movement. As external factors hold sway, the path forward for Bitcoin may be fraught with challenges and volatility.

Original Source: www.coindesk.com