Bitcoin's price dropped for the fourth straight day, reflecting growing market concerns. The world's largest cryptocurrency declined 1.55% to $86,383.0 by 09:37 ET, nearing its lowest level since mid-November 2024. During the previous session, Bitcoin fell as low as $82,332.9.
The market's focus now shifts to the upcoming U.S. Personal Consumption Expenditures (PCE) inflation report. Investors are watching closely, as this data could influence the Federal Reserve’s future interest rate decisions.
Uncertainty over trade policies has contributed to Bitcoin’s recent downtrend. President Donald Trump reaffirmed his 25% tariffs on imports from Canada and Mexico but signaled a potential delay. The implementation, initially set for March 4, may now be pushed to April 2.
This ambiguity has created instability in global financial markets, including the cryptocurrency sector. Historically, tariff-related announcements have led to increased market fluctuations. Investors often move away from risk-sensitive assets like Bitcoin during such periods.
As trade tensions persist, market participants remain cautious. The potential for prolonged trade disputes could further impact Bitcoin’s price in the coming weeks.
Investors are also waiting for the PCE inflation report, a key metric for the Federal Reserve. Recent economic indicators, including falling consumer confidence and sluggish business activity, have fueled speculation about possible rate cuts.
However, inflation remains above the Fed’s 2% target, making rate reductions uncertain. A higher-than-expected inflation reading could delay any policy easing, affecting market sentiment. Traders will closely monitor the report for clues about the Fed’s next move.
Amid Bitcoin’s decline, BlackRock’s spot Bitcoin ETF (IBIT) recorded a significant net outflow of $418.1 million on Wednesday. This marked its largest daily withdrawal, surpassing the previous record of $332.6 million on January 2.
Despite this, IBIT remains the leading U.S. spot Bitcoin ETF, with over $40.2 billion in cumulative net inflows. It also holds $51.6 billion in assets under management. Trading volume remains strong, with IBIT accounting for 72% of all spot Bitcoin ETF trades on Wednesday.
Meanwhile, Ethereum ETFs also saw notable withdrawals, with U.S. spot Ethereum ETFs experiencing $94.3 million in net outflows on the same day. This marks five consecutive days of withdrawals, now totaling $244.4 million.
While Bitcoin price drops, some altcoins showed relative strength. Ethereum lost 1.6%, falling to $2,347.59. However, other cryptocurrencies outperformed. XRP rose 0.5% to $2.22, while Solana gained 2.9%. Polygon saw a 4.1% increase, and Cardano climbed 1.6%.
Among meme tokens, Dogecoin advanced 3%, while $TRUMP token added 2.8%. These gains indicate selective investor interest, even in a broader risk-averse environment.
Stay Updated on Crypto Market Trends
Market volatility remains high, with inflation data and trade policies shaping future price movements. To stay informed on the latest Forex and cryptocurrency trading news, visit our website: FIXIO Markets.
Bitcoin price drops for the fourth day, nearing a three-month low. Inflation concerns and trade tariffs drive market uncertainty.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)