Bitcoin Drops Below $82,000 Amid Inflation Concerns and Trade Tensions
On Monday, Bitcoin’s price fell below $82,000, mirroring declines in the broader cryptocurrency market, which was influenced by significant drops in U.S. markets. Investors responded to concerns over rising inflation and escalating trade tensions stemming from Donald Trump’s trade war with other nations.
Ethereum also followed Bitcoin’s downward trend, falling to $1,780, while XRP dropped to $2.13, according to data from CoinGecko.
Since reaching its all-time high of $108,790 last year, Bitcoin has lost nearly $27,000 in value.
Read More: PM Shehbaz Discusses Bitcoin Mining and Asset Tokenization in Talks
Inflation Concerns and Trade Tensions Impact Markets
The decline came after the U.S. Commerce Department reported a sharper-than-expected rise in inflation. This report has raised uncertainty ahead of the U.S. Federal Reserve’s upcoming decisions and the April 2 rollout of reciprocal tariffs under Trump’s new trade policies.
Stock futures reflected the broader market’s unease, with both the S&P 500 and Nasdaq-100 dropping about 0.7% to 0.8%, and Dow futures falling by 0.55%. Barclays has warned that Trump’s $600 billion tariff plan could impact up to 25 countries, particularly affecting sectors like automobiles, pharmaceuticals, and semiconductors.
Investor Sentiment Weakens
Investor confidence has significantly weakened, with The Kobeissi Letter reporting a 20-point drop in consumer confidence to 57, the lowest level outside of a formal recession. Analysts predict that inflationary pressures could continue to grow.
Crypto Markets and Bitcoin’s Outlook
In this volatile environment, the cryptocurrency market remains unpredictable. Large institutional investors are retreating from riskier assets, and Bitcoin continues to show short-term bearish correlations with equities. If current trends persist, Bitcoin could touch $80,000 in April.
