Bitcoin Drops Over 3% to Test 200-Day Average Amid Macro Concerns
Bitcoin (BTC) experienced a decline of over 3% on Sunday, trading at $83,200 and extending a three-day losing streak. The cryptocurrency has fallen more than 10% since reaching highs above $92,800 on Thursday.
Key developments include:
- Escalating trade tensions between the U.S. and China, with tariffs imposed by Beijing on certain U.S. agricultural goods in response to U.S. import hikes.
- Federal Reserve Chairman Jerome Powell indicated a cautious stance on interest rates amid macroeconomic uncertainties.
- Market analysts note that concerns over tariffs are overshadowing President Trump's recent announcements regarding a BTC strategic stockpile.
Analytics firm IntoTheBlock observed that despite the "positive news," Bitcoin's price fell from $90,000 to under $87,000 rapidly. They highlighted a growing correlation between Bitcoin, ether, and U.S. stocks driven by macroeconomic fears.
Noelle Acheson pointed out that Bitcoin's poor performance post-announcement emphasizes the ongoing impact of macroeconomic issues on crypto assets.
The market is monitoring the 200-day simple moving average (SMA), as past instances show buyer activity below this level potentially leading to recoveries.