Summary
- It was reported that the slowdown in the US's major economic indicators is amplifying market uncertainty, and there is analysis suggesting that Bitcoin's short-term uptrend may be limited.
- Matrixport diagnosed, based on major indicators such as futures funding rates and stablecoin activity, that a highly volatile phase may continue for the time being.
- The report projected that unless the US Fed's interest rate cuts become fully underway, it will be difficult for Bitcoin to maintain its momentum without encountering external shocks.
As major economic indicators in the United States slow down, overall market uncertainty is expanding, and there is an analysis suggesting that Bitcoin (BTC) may also see its short-term uptrend capped.
On the 6th, the cryptocurrency service provider Matrixport stated in its weekly report, "Recently, two key economic indicators (the labor market and inflation) have dropped to their lowest levels in months, suggesting the possibility of structural changes within the market." The report added, "Futures funding rates and stablecoin activity, among other indicators, are also hinting at a larger-scale transitional period."
The report suggested that the recent increase in market demand may have been a result of orders being moved forward in response to President Trump's tariff policies, and that this uptick could be temporary. "Currently, this demand is reverting to more normal flows, and policymakers are likely to remain cautious about early rate cuts, given that tariffs could once again increase inflationary pressures," the report analyzed.
Additionally, the report stated, "As long as Bitcoin does not fall below $96,719, the bullish structure remains intact," but cautioned that "with momentum weakening and this support level approaching, some profit-taking flows may emerge first."
Given the trends in initial economic indicators, the report forecasted, "The market may enter a highly volatile phase over the next two months or longer, and unless interest rate cuts by the Federal Reserve (Fed) – the US central bank – get fully underway, it will not be easy for Bitcoin to continue its uptrend without external shocks."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.![[Market] Bitcoin drops intraday to the $72,000 level… debate over 'safe-haven credibility' reignited](https://media.bloomingbit.io/PROD/news/e3aeb7f7-851b-4479-bfd0-77d83a3b7583.webp?w=250)
