Market Analysis
Bitcoin (BTC) has stabilized around $84,000 after a concerning dip below $77,000 last week, but market experts warn that President Trump’s aggressive trade policies could trigger further downside. The cryptocurrency market faces increased pressure as recession fears mount and the anticipated ‘Trump put’ appears less likely to materialize.
Treasury Secretary Scott Bessent’s recent comments suggesting that market corrections are ‘healthy and normal’ have sparked concerns about the administration’s willingness to intervene in market turbulence. This stance marks a significant shift from traditional government approaches to market stability.
Key Market Implications
- Bitcoin Price Action: Currently trading at $83,468, down 0.9% from Friday
- Market Sentiment: Record number of U.S. consumers expecting worsening conditions
- Trading Volume: Decreased institutional participation amid uncertainty
Greg Magadini, director of derivatives at Amberdata, warns: “I doubt Trump will reverse course on tariffs at these price levels. I can’t picture a scenario where risk assets crash and crypto remains unaffected.”
Technical Outlook
The bitcoin-gold ratio has retreated to early November levels, with the 50-day SMA trending toward a bearish death cross with the 200-day SMA. This technical setup suggests potential for extended downside pressure.
Market Outlook
With the Federal Reserve meeting scheduled for Wednesday and mounting recession concerns, traders should prepare for increased volatility. The combination of trade tensions, bearish technical signals, and deteriorating consumer sentiment could create significant headwinds for crypto assets in the near term.
Source: CoinDesk