According to the report by 10x Research, the recent recovery of Bitcoin has encountered difficulties due to higher-than-expected core PCE data. This data indicates rising inflation, partly due to Trump's tax policy, suggesting instability in consumer sentiment. Inflation expectations have increased to 5.0% over a year, leading to poor performance of risky assets and triggering stop-loss orders in short-term bullish strategies.
10x Research predicts that Bitcoin could drop below $80,000 this week, as multiple risk-reduction factors may put pressure on the stock market and impact the cryptocurrency market. Trump's tax policy has shifted from initial mild expectations to decisive action, causing market concerns about potential taxation before negotiations are completed.
This change has significantly increased market uncertainty. Additionally, if ISM manufacturing PMI data is weak, market pressure could increase further; and if US employment data remains strong, this could slow Fed intervention, threatening the market even more. It is worth noting that the VIX index remains low, indicating that many traders may be underestimating short-term downside risks.
Content is for market information purposes only and does not constitute investment recommendations.
