Bitcoin has slipped to around $105,300 as renewed concerns over U.S. trade policy and inflation data unsettle global markets. Despite the 2.8% decline in the past 24 hours, the cryptocurrency has maintained its position above the $100,000 mark for more than 20 consecutive days, signaling persistent investor demand .
Market Factors Driving the Decline
The sell-off came after a U.S. appeals court reinstated trade tariffs that had been previously blocked by a lower court. This legal reversal has reignited concerns about an extended trade war between the United States and China. Adding to the uncertainty, Treasury Secretary Scott Bessent noted in a recent interview that negotiations with China were “a bit stalled.”
Market sentiment was further dampened by reports that former President Trump met with Federal Reserve Chair Jerome Powell at the White House, reportedly pushing for interest rate cuts . This political pressure on the central bank has added another layer of complexity to an already uncertain macroeconomic environment.
“When it comes to global trade right now, the only certainty is uncertainty,” said Darren Nathan, head of equity research at Hargreaves Lansdown.
Broader Crypto Market Impact
The broader cryptocurrency market has felt the impact of these macroeconomic concerns. The CoinDesk 20 Index, a measure of the broad crypto market, fell 4.4% to 3,129 in the past 24 hours . Technical analysis shows Bitcoin has dropped below a trendline representing the recovery from early-April lows near $75,000, coinciding with a bearish crossover of key moving averages .
Several analysts are predicting potential further declines, with some suggesting Bitcoin could test support levels at $102,000 and even drop to $90,000 in the coming days if bearish momentum continues .
Institutional Interest Remains Strong
Despite the current market turbulence, institutional interest in Bitcoin continues to grow. BlackRock’s iShares Bitcoin Trust (IBIT) is experiencing record-low volatility and attracting billions in investment flows. Spot Bitcoin ETFs have seen $5.85 billion in total net flows this month, up significantly from $2.97 billion in April .
Additionally, Spanish banking giant Santander is reportedly considering offering retail clients access to cryptocurrencies, while Panama has proposed allowing ships to pay transit fees in its canal using Bitcoin .
What to Watch
All eyes are now on the core PCE inflation data, a key gauge for Federal Reserve policy. A higher-than-expected reading could diminish hopes for interest rate cuts, potentially putting additional pressure on risk assets like cryptocurrencies .
“Any sign of worsening inflationary pressure is likely to weigh on expectations for further interest cuts by the Fed this year, which would be a worry given the inertia building in the economy,” noted Hargreaves Lansdown’s head of equity research.
For now, Bitcoin’s ability to maintain support above the psychologically important $100,000 level remains a key indicator of market resilience amid the uncertainty .
Upcoming Crypto Events
Several significant events are on the horizon for the crypto market:
• The second round of FTX repayments begins today
• Mezo mainnet launch expected tomorrow
• U.S. House Financial Services Committee hearing on “American Innovation and the Future of Digital Assets” scheduled for June 4
• U.S. SEC Crypto Task Force roundtable on “DeFi and the American Spirit” on June 6
