Bitcoin (BTC) Bear attempted to extend his three-day winning streak by penetrating key support on Sunday as macroeconomic concerns overshadowed President Donald Trump’s recent crypto-related announcement.
According to data from Coindesk and TradingView, the major cryptocurrencies by market value exceeded 3% to $83,200, testing the 200-day Simple Moving Average (SMA). Prices have fallen more than 10% since entering a high of over $92,800 on Thursday.
The latest decline comes as trade tensions between the US and China are set to escalate on Monday. Beijing will collect tariffs on certain US agricultural products in retaliation for President Donald Trump’s latest hike on Chinese imports. The tariff war injected a great deal of uncertainty into markets and policymakers.
On Friday, Federal Reserve Chairman Jerome Powell reaffirmed that the central bank will remain cautious about interest rates, assessing the economic impact of President Donald Trump’s policy change. Comments came shortly after soft US non-farm pay reports and expectations for at least three Fed rate cuts this year.
According to the observer, these developments, coupled with a recession signal from the bond market, have focused on Trump’s recent announcement of strategic BTC stockpile.
“Despite the very positive news, Bitcoin has dropped by 4% to less than $90,000 hours, less than $87,000. It appears to be focusing on Trump’s crypto-related actions, which is increasingly secondary as the fear of the tariff war accelerates.
The company added that macro concerns are primarily tariff-related concerns pushing down the market, focusing on the strengthened positive correlation between Bitcoin, ether and US stocks.
“A further action like Trump says he hasn’t even seen the stock market, and his manager, who instead targets low long-term interest rates, suggests that investors’ expectations for Trump’s bull market may be too enthusiastic,” the company said.
Noelle Acheson, author of Crypto Is Is Macro Now, said in Saturday’s edition that BTC’s Dour Price Action “emphasizes how macro concerns will still be heavy on Crypto Assets,” following the announcement of strategic stockpiles.
BTC Daily Chart. (tradingView/coindesk)
The chart shows that buyers stepped in under the 200-day SMA on February 28th and March 2nd, causing prices to bounce. The market may turn to this level to see if the traders do the same again.
