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Bitcoin is under pressure this week as market analysts predict that the cryptocurrency could drop below $80,000. According to a recent update by digital assets research firm 10x Research, a combination of rising inflation and uncertainty surrounding U.S. trade tariffs is contributing to the bearish outlook for Bitcoin and the broader financial markets.

Macroeconomic Factors Weighing on Bitcoin

The latest report from 10x Research pointed to higher-than-expected U.S. core Personal Consumption Expenditures (PCE) data as a significant factor. This data suggests that inflation remains a persistent issue. Additionally, recent comments from former U.S. President Donald Trump regarding tariffs have added to market uncertainty. Concerns are growing that aggressive trade policies could dampen economic sentiment, further pressuring risk assets like Bitcoin.

Inflation and Tariff Concerns Stalling Bitcoin’s Momentum

Bitcoin’s three-week rally has come to a halt as hotter-than-expected inflation data and tariff-related concerns have taken center stage. The core PCE data, often seen as a key inflation indicator, signals that rising prices may continue to erode purchasing power. This, combined with tariff rhetoric, has undermined consumer and investor confidence, contributing to a weaker crypto market.

Potential Impact of Upcoming Economic Indicators

Looking ahead, 10x Research identified the U.S. ISM Manufacturing PMI as a potential catalyst for further downside. A weaker-than-expected PMI reading could heighten risk aversion, with ripple effects spilling into the cryptocurrency market. On the other hand, robust employment data may delay Federal Reserve intervention, reducing the likelihood of a market recovery in the near term.

Volatility Remains Subdued Despite Risks

Interestingly, market volatility remains relatively low, with the VIX—often referred to as the “fear index”—at subdued levels. This suggests that traders might be underestimating the potential for further downside. However, the combination of inflation concerns, tariff uncertainty, and weak manufacturing data could quickly change this dynamic.

What’s Next for Bitcoin?

With multiple macroeconomic pressures in play, Bitcoin’s recent rebound appears fragile. If these risk factors persist, the cryptocurrency could face additional declines in the coming days. Investors and traders should remain vigilant and monitor key economic indicators to better navigate this uncertain market environment.

For more updates and insights on cryptocurrency and financial markets, stay tuned to the latest developments.

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