A succession of bearish events caused a red tide in digital assets and most cryptocurrencies within the market capitalization of the market suffer falls greater than 10%.
As cryptootics reported, one of the main events that caused this bearish pressure was The tariff war that the president of the United States, Donald Trump unleashed. The president announced 25% taxes for imports from Mexico and Canada, and 20% for Chinese acquisitions. In addition, he said that he does not rule out tariffs on some products from the European Union.
Seeing the impact on financial markets, including digital assets, Trump maintained dialogues with authorities from Mexico and Canada and postponed the measure until April 2.
Another issue that caused disappointment in the cryptocurrency market was the executive order signed by the Republican leader to create a strategic Bitcoin reserve. Although it is a historical fact, The news was far from promoting optimism Among investors.
This is because the resolution establishes that the reservation will be made up of the Bitcoin (BTC) and other digital assets seized by the federal government “as part of the process of confiscation of criminal or civil assets”, without making clear what other methods will use to accumulate more bitcoin.
To this is added that the cryptocurrency summit, held on Friday, March 7 at the White House, did not leave significant regulatory ads for the Altcoinswhich increased uncertainty in the market
In this context, BTC accumulates a fall greater than 10% and, at the time of the writing of this article, its price is $ 82,600.
While the market resists, we must not lose sight of the fact that BTC and cryptocurrencies are about to face A week of high volatility.
It is that next Wednesday, March 12, the United States Consumer Price Index (CPI) will be published. Whatever the number, it will cause movements in the BTC contribution.
Inflation in the main financial power was 3% annually in January, 0.1% above forecasts
For February, the market projects that the CPI will be 2.9% per year, which would imply a 0.1% drop
Inflation fact is important because it is one of the indicators used by the United States Federal Reserve (Fed) to define cuts in the interest rate.
As explained in cryptopedia, cryptootic educational section, when the interest rate is high, the cost of indebtedness increases, there is less liquidity in the system and, as a consequence, investors seek refuge in treasure bonds.
Otherwise, if you lower there is a rate cut, it increases The appetite for risk assets, such as BTC and cryptocurrencies.
The next meeting of the Fed to decide a possible trimming of the interest rate will be March 19. Currently, it is located in the range of 4.25%-4.50%.