Bitcoin Nears $90K as US Economic Reports Shape Crypto Market

The crypto market, particularly Bitcoin, remains highly reactive to U.S. economic data as it approaches the $90,000 threshold. Key reports this week—initial jobless claims, S&P Global PMIs, and consumer sentiment—are shaping investor behavior. Strong jobless claims (215,000 vs. expected 225,000) suggest labor market resilience, potentially boosting crypto liquidity. However, plunging consumer sentiment (50.8, near historic lows) and a 12th consecutive drop in the Leading Economic Index signal economic uncertainty, which could drive investors toward safer assets. Meanwhile, mixed PMI readings (strong services but weaker manufacturing) complicate Fed rate-cut expectations, influencing Bitcoin’s demand. Analysts warn that persistent economic weakness may pressure crypto prices lower.

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Bitcoin price hits three month low amid economic concerns and market volatility

Bitcoin’s price fell to a three-month low of $86,050 amid concerns over US equities, rising inflation, and a significant drop in consumer confidence, which hit 98.3 in February. Analysts suggest that despite the current downturn, historically low relative strength index levels may present buying opportunities, and institutional adoption of Bitcoin continues to grow.

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Bitcoin and Crypto Market Plummets with Over 1.58 Billion Liquidated

Bitcoin has plunged to $86,141, leading to over $1.58 billion in liquidations, primarily from leveraged long positions. This market correction follows a significant hack of Bybit, attributed to the Lazarus Group, which stole nearly $1.5 billion in Ethereum and is now laundering the funds. The downturn is compounded by a broader stock market sell-off and declining consumer confidence.

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Wall Street Declines Amid Rising Consumer Pessimism and Economic Concerns

Wall Street experienced a decline as consumer confidence waned due to inflation and tariffs, with the S&P 500 down 1% and the Nasdaq composite falling 1.9%. Despite solid economic growth, a measure of short-term consumer expectations dipped below a recession signal for the first time since June. High-momentum stocks like Nvidia and Tesla saw significant losses, while Treasury yields fell as investors sought safer assets amid economic uncertainties.

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Bitcoin Price Faces Key Economic Events as Traders Eye $100K Target

Bitcoin’s price is currently consolidating around $95,890, facing resistance at $97,000. Key economic indicators this week, including the Consumer Confidence Index and GDP report, alongside Federal Reserve speeches, could significantly influence market sentiment and Bitcoin’s trajectory toward $100,000. A breakout above resistance may lead to a rally, while failure could see prices retreat to support levels at $95,000 or lower.

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Stocks nearing peak as weak returns loom ahead for investors

Stocks are nearing a peak, with Calamos Investments’ CIO Michael Grant warning of a potential period of weak returns ahead. He cites “invincibility syndrome” among investors, high valuation metrics, and record bullish sentiment as indicators that the market may soon face significant challenges, despite a strong performance in 2024. Grant suggests that the current optimism could lead to a prolonged downturn, as positioning measures show little room for further gains.

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Wall Street anticipates gains ahead of Nvidia earnings and inflation data

Wall Street showed slight gains in premarket trading as investors await Nvidia’s earnings report and inflation data this week. Nvidia, a key player in the AI sector, is expected to report a 112% revenue increase, raising concerns about overvaluation among Big Tech stocks. Meanwhile, oil prices surged amid geopolitical tensions, and the Bank of Japan hinted at potential interest rate hikes if inflation remains stable.

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US Inflation Reports and Federal Reserve Speeches to Impact Crypto Markets

This week’s US inflation reports and Federal Reserve speeches are expected to impact crypto markets, which have remained flat following a recent fall. Key economic indicators, including the core PPI and CPI reports, will provide insights into inflationary pressures and potential monetary policy shifts. Additionally, CEO expectations and Elon Musk’s comments on the Fed add further layers of interest to the market’s dynamics.

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