PAX Gold (paxg) 
Bitcoin Remains Steady Amid Market Volatility
Despite a downturn in popular American stock indices and exchange-traded funds, the Bitcoin price held steady above $95,550. At the time of writing, Bitcoin was trading above $96,550, a day after U.S. equities experienced their worst day this year.
US Equities Take a Hit
The S&P 500 index plummeted by 1.71%, while the tech-heavy Nasdaq 100 fell by 2%, erasing 455 points. The Dow Jones and the small-cap-weighted Russell 2000 also declined by 1.70% and 3%, respectively. The Schwab US Dividend Equity ETF, which tracks some of the biggest value stocks in the US, fell by 0.5%.
Top Laggards in Technology Stocks
Many technology stocks, including Nvidia, Apple, Microsoft, and Meta Platforms, were among the top laggards. The CNN Money fear and greed index remained in the fear zone of 35, while the crypto fear and greed index moved to the greed area of 38.
Market Risk and the Federal Reserve
Bitcoin and American equities have retreated due to elevated market risk surrounding President Donald Trump’s tariffs and the Federal Reserve. The Fed minutes showed that most officials favored maintaining a restrictive policy, as inflation remains elevated. Data revealed that the headline and core consumer price index rose to 3% and 3.3% in January, moving further from the 2% target.
As a result, investors are concerned about the impact of tariffs, which will likely lead to more market risks. Trump has already implemented tariffs on Chinese imports, with further tariffs on Canada, Mexico, and European goods in the pipeline.
Stagflation and Its Impact on Cryptocurrencies
Higher tariffs will likely lead to stagflation, a period where high inflation is accompanied by slow growth rate. This is a difficult period, as interest rate hikes to slow inflation lead to slow economic growth, while rate cuts trigger higher inflation.
“Bitcoin and other cryptocurrencies tend to perform well when the Federal Reserve has a dovish tone.”
Bitcoin Price Chart Points to a Rebound
On the positive side, there are signs that the Bitcoin price will stage a strong comeback in the coming weeks. The weekly chart shows that it has been forming a bullish flag pattern, which is made up of a tall vertical line and some consolidation. This pattern eventually triggers a strong bullish breakout.
Before that, the Bitcoin price formed a cup-and-handle pattern. This cup has a depth of about 78%, meaning that the BTC price target is about $121,590. The target is established by measuring the distance from the cup’s upper side.
For more news and analysis on the cryptocurrency market, visit Global Crypto News.
