Bitcoin under pressure: Is the crypto market before coping with crisis after unexpected number of inflation?

<p> <strong> Bitcoin under pressure: Is the crypto market before coping with crisis after unexpected number of inflation? </strong> </p>

Bitcoin under pressure: Inflation and market conditions influence the course

The course of Bitcoin (BTC) has experienced a significant decline, especially after the publication of the American Personal Consumpture Expenditures (PCE) Price Index. The current inflation figures were higher than before, which led to investors quickly migrating from risky facilities such as cryptocurrencies. As a result, the Bitcoin course fell by more than 3 percent and is now fighting for the critical support area of ​​$ 84,000. A crucial question remains whether Bitcoin can keep this value.

inflation higher than expected

The PCE price index, a significant level of inflation that is monitored by the Federal Reserve, rose by 0.3 percent compared to the previous month in February. While this increase met expectations, it was the core PCE that caused excitement. This index ignores volatile food and energy prices and recorded an increase of 0.4 percent a month, while economists forecast 0.3 percent. The core PCE rose by 2.8 percent on the annual basis, which was just above the market expectation of 2.7 percent.

These increased inflation numbers indicate that inflation is more persistent than previously assumed. This reduces the likelihood of interest rate reductions by the American central bank, which in particular brings negative messages in risky systems such as Bitcoin. An aggressive monetary policy of the FED could lead to stricter measures, which usually has a stressful effect on the cryptoma market.

Bitcoin under pressure: Does the $ 84,000 limit?

After the announcement of the number of inflation, the Bitcoin course fell significantly and temporarily slipped among the $ 84,000 mark. Analysts warn that a further decline below this psychological limit could lead to a significant correction. The market analyst Michaël van de Poppe emphasizes that this is a critical level:

"If the course dives below the $ 84,000, I expect a test by $ 78,000-80,000 or possibly even deeper before going up again."

Bitcoin has been struggling with considerable challenges in the past few months. Despite a phase of relative stability, the cryptocurrency failed to break sustainably. Persistent sales pressure of briefly invested holders also contains the Bitcoin course, while the market also has to deal with a decrease in liquidity.

The current macroeconomic conditions also play a significant role. Worries about inflation, an uncertain interest environment and tensions on the financial market, some of which have existed since President Donald Trump took office, as trade wars with allies, continue to have a negative impact on the cryptoma market.

Although Bitcoin was historically able to recover from setbacks, it is important for investors to be prepared for further volatility. With a FED that may hold on to the high interest rates, the pressure on the cryptoma market remains for the time being.