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Bitcoin slides to $82K as trade tensions and inflation risks mount

Bitcoin slides to $82K as trade tensions and inflation risks mount

GrafaGrafa2025/03/31 06:30
By:Mahathir Bayena

Bitcoin (CRYPTO:BTC) and major cryptocurrencies declined Sunday alongside U.S. stock futures, reflecting investor caution ahead of escalating trade tensions and renewed inflation concerns.

Bitcoin fell to $82,100, while Ethereum (CRYPTO:ETH) dipped to $1,790 and XRP (CRYPTO:XRP) dropped to $2.13, according to CoinGecko data.

The pullback follows weeks of volatility in equities, with tech stocks retreating sharply and broader sentiment weakening.

Futures tied to the S&P 500 and Nasdaq-100 fell roughly 0.7% to 0.8%, while Dow futures lost 0.55% in early trading.

Analysts attribute the declines to fears over new tariffs and inflation data.

The U.S. Commerce Department reported a hotter-than-expected February core Personal Consumption Expenditures Price Index (PCE) increase of 0.4%, exceeding economists’ 0.3% forecast.

This marks the largest monthly rise in over a year.

President Donald Trump’s April 2 reciprocal tariffs targeting 25 countries—including sectors like automobiles, pharmaceuticals, and semiconductors—are also weighing on markets.

Auto-related tariffs alone could impact $275 billion in annual imports, part of a broader $600 billion revenue initiative via the “External Revenue Service.”

Consumer sentiment has deteriorated sharply, with The Kobeissi Letter reporting a 20-point drop to 57—the lowest level outside a formal recession.

“An economic slowdown has clearly begun,” the publication stated.

Historical data from prior Trump-era trade conflicts shows a 4% PCE price rise in tariff-affected categories, while non-affected sectors saw declines.

Analysts warn inflation pressures may accelerate across most sectors.

Crypto’s correlation with equities persists despite Bitcoin’s perceived inflation-hedge narrative.

Institutional capital has rotated out of risk-heavy positions, contributing to volatility.

The “Magnificent 7” stocks alone lost over $3 trillion in market value recently.

Retail participation remains active, but broader macroeconomic risks—including trade policy and inflation—continue to dominate market sentiment.

At the time of reporting, the Bitcoin (BTC) price was $82,155.74.

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