Bitcoin Under Pressure: 4-Day Decline Reaches Lowest Point Since November
Bitcoin's price slump continued on Thursday, marking its fourth consecutive day of decline as it approached a three-month low. Market uncertainty surrounding US tariff policies has put pressure on risk assets, with investors closely watching upcoming US inflation data to gauge the Federal Reserve's next moves on interest rates—key factors influencing Bitcoin's price trajectory.
As of Thursday 15:12 Taipei Time, Bitcoin fell 2.8% to $86,246.28, nearing its lowest level since mid-November of last year. The previous trading session saw Bitcoin briefly drop to $82,332.90, reflecting heightened market risk aversion and broader pressure on cryptocurrency markets.
Trump Tariff Uncertainty Adds to Bitcoin Volatility
Former US President Donald Trump recently reaffirmed plans to impose 25% tariffs on imports from Canada and Mexico, while suggesting a potential delay from March 4 to April 2. This policy shift has amplified market uncertainty, triggering global financial volatility and impacting Bitcoin's price.
Historical trends show that trade policy unpredictability often reduces risk appetite, leading investors to pull back from assets like Bitcoin. Recent market data confirms this pattern: if tensions escalate, volatility could rise further, reshaping investment strategies and capital flows.
All Eyes on US Inflation Data and Fed Policy
Investors are focused on Friday's US Personal Consumption Expenditures (PCE) Price Index release—a critical benchmark for Federal Reserve inflation assessments and rate decisions. Weak February consumer sentiment and stalled business activity have fueled expectations of potential rate cuts, though persistent inflation above the Fed's 2% target complicates the outlook.
Should PCE data confirm high inflation, the Fed may maintain a hawkish stance, dampening risk appetite and further pressuring Bitcoin's price.
Crypto Market Slump: Ethereum, XRP Follow Bitcoin Down
Other major cryptocurrencies mirrored Bitcoin's decline amid rising risk aversion:
- Ethereum dropped 5.2% to $2,355.41 (4-day losing streak)
- XRP fell 2.8% to $2.2243
- Solana bucked the trend with a 0.8% gain
- Meme coins: Dogecoin slid 1%, while Trump-linked $TRUMP rose 3.2%
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Key Takeaways for Investors
- Short-term Bitcoin price movements remain tied to US policy shifts and economic data.
Critical indicators to watch:
- PCE inflation figures (Friday release)
- Fed statements on rate policy
- Prepare for volatility: Trade tensions and inflation surprises could trigger sharp swings.
FAQ: Bitcoin Price Dynamics
Q: Why is Bitcoin sensitive to US inflation data?
A: Inflation impacts Fed interest rates, which influence investor risk appetite and capital flows into/out of crypto.
Q: How do Trump’s tariffs affect Bitcoin?
A: Trade wars increase market uncertainty, often pushing investors toward safer assets and away from volatile ones like Bitcoin.
Q: What’s the support level for Bitcoin now?
A: The $82,300–$86,200 range is critical; a breakdown could signal further declines.
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Disclaimer: CFD trading carries high risks and may result in capital loss. Past performance doesn’t guarantee future results. This content is informational only and not investment advice.