Sunday saw Bitcoin (BTC) bears aiming to break through crucial support, continuing a three-day downward trend as macroeconomic worries overshadowed recent crypto announcements from President Donald Trump.
The top cryptocurrency by market capitalization fell over 3% to $83,200, approaching the 200-day simple moving average (SMA), based on data from CoinDesk and TradingView. Since reaching a peak above $92,800 on Thursday, prices have slid by more than 10%.
This latest downturn coincides with an escalation of trade tensions between the U.S. and China set for Monday, as Beijing plans to impose tariffs on select U.S. agricultural products in response to President Trump’s recent increases on imports from China. This ongoing tariff conflict has injected considerable uncertainty into the markets and among policymakers.
Federal Reserve Chairman Jerome Powell reiterated on Friday that the central bank will adopt a cautious approach to interest rates while evaluating the economic effects of President Trump’s policy changes. His remarks followed a disappointing U.S. nonfarm payrolls report and the anticipation of at least three Fed rate cuts throughout this year.
Analysts indicate that these developments, along with recessionary signals from the bond market, are distracting attention from Trump’s announcement concerning a strategic BTC stockpile.
“In spite of very favorable news, Bitcoin dropped 4% from $90,000 to below $87,000 within hours. It seems that the focus on Trump’s crypto initiatives is becoming increasingly secondary as fears surrounding the tariff war mount,” noted analytics firm IntoTheBlock in their weekly newsletter to subscribers on Friday.
The firm further commented that macroeconomic concerns, predominantly those linked to tariffs, have been weighing on the markets, highlighting the growing positive correlation between Bitcoin, Ether, and U.S. stocks.
“Additional statements from Trump indicating he is not monitoring the stock market, alongside his administration’s efforts to target lower long-term interest rates, suggest that investor expectations for a Trump-led market rally may have been overly optimistic,” the firm added.
Noelle Acheson, author of *Crypto Is Macro Now*, remarked in Saturday’s edition that BTC’s sluggish price movement following the strategic stockpile announcement “highlights how macroeconomic issues continue to significantly impact crypto assets.”
The chart indicates that buyers re-entered the market below the 200-day SMA on February 28 and March 2, causing a price rebound. The market will likely monitor this level closely to see if traders respond similarly once more.
