Bitcoin Faces Continued Decline Amid Macroeconomic Uncertainty
Bitcoin’s decline has mirrored losses in traditional equity markets. The S&P 500 has fallen by over 6% this month, while the Nasdaq faced drop of 4.7%, respectively
Bitcoin has started the week at $82,000, marking a 1.33% decline over the past 24 hours, continuing a weeklong downtrend. The asset has fallen more than 5% in the last 7 days, triggering a cascade of liquidations across the crypto market.
Macroeconomic Pressures and Tariff Uncertainty
A growing sense of unease in both traditional and digital financial markets is being fueled by macroeconomic pressuresand uncertainty around tariffs. Investors are particularly cautious as President Donald Trump prepares to announce his “Liberation Day” on April 2, which is expected to include sweeping “reciprocal tariffs.” These tariffs, designed to retaliate against foreign trade practices, are fueling fears of escalating trade tensions and contributing to market derisking, a trend where investors reduce exposure to riskier assets, including Bitcoin.
Inflation and Consumer Confidence Concerns
Additional negative macroeconomic signals are contributing to the market’s unease. Last week, Core PCE data pointed to higher-than-expected inflation, adding to the already existing pressure on the global economy. Consumer confidence, a key economic indicator, has fallen to its lowest level in over a decade, signaling widespread unease among the public. Moreover, Goldman Sachs has raised its recession forecast from 20% to 35%, citing heightened geopolitical risks and growing economic instability.
Outlook: Uncertain Times Ahead
The combination of macroeconomic stress, heightened geopolitical risks, and a growing sense of caution in the financial markets paints a bleak outlook for BTC and other risk assets in the short term. While Bitcoin’s long-term narrative remains strong for many, its correlation with traditional markets during times of uncertainty suggests that further volatility may be ahead. As investors continue to react to the ongoing uncertainty, Bitcoin’s ability to regain momentum may depend on the resolution of some of these macroeconomic challenges.
Given the 13% loss in the first quarter and with macroeconomic pressures continuing to mount, the next few weeks will be crucial in determining Bitcoin’s trajectory. The focus will likely remain on the upcoming tariffs and inflation data, with investors on edge as they weigh the risk of further downturns or potential rebounds.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
