Bitcoin sees significant price bump amid global economic uncertainty, with traders closely watching U.S. data releases and the upcoming levy of U.S. tariffs starting April 2.
Bitcoin Hovers Above $87K as Traders Monitor Tariffs and Data Releases
Bitcoin remained steady above $87,000 in Asian afternoon hours on Wednesday, with traders closely watching U.S. data releases and the upcoming levy of U.S. tariffs starting April 2.
Market Focus: Personal Consumption Expenditure (PCE) Data
The upcoming PCE data is a key market focus, as it influences Fed interest rate decisions and impacts bitcoin prices. The index captures inflation across a wide range of consumer expenses and reflects changes in consumer behavior. Released monthly, the PCE is said to influence Fed interest rate decisions.
Cryptocurrency Price Movements
Cryptocurrencies such as Solana’s SOL, xrp (XRP) , BNB Chain’s BNB, and ether (ETH) saw minor increases, while dogecoin (DOGE) and shiba inu (SHIB) experienced significant jumps. Memecoin DOGE outperformed with a 5.5% jump, alongside continued bumps in pepe (PEPE) and mog (MOG), which are acting as ‘beta bets’ on ether’s strength.
Traders’ Sentiment
Concerns about a U.S. economic slowdown remain, but traders at QCP Capital believe that the upcoming quarter and April will be a strong period for risk assets. The S&P 500 has delivered an average annualized return of 19.6% in Q2, while Bitcoin has also recorded its second-best median performance during this stretch.
Market Outlook
Options markets remain cautious, with call skew only emerging from June onwards, suggesting traders are waiting to see how the tariff situation develops. The rotation to riskier memes and a 228% jump in ShibaSwap’s native exchange in the last 30 days have contributed to SHIB‘s surge. However, open interest on SHIB-tracked futures has risen upward of 20% since Sunday, indicative of expectations of further volatility.
Expert Insights
Augustine Fan, Head of Insights at SignalPlus, believes that crypto will remain a close proxy of equities in the foreseeable future, as there is no unique catalyst in the meantime. However, recent M&A announcements with Coinbase/Kraken give faith that the long-term bull market remains alive and well.
Tariffs and Market Sentiment
The upcoming tariff announcement from Trump on April 2nd has sparked rumors of a softer tariff response, which could help recover some technical damage in US stocks and spark a global rally. Traders at QCP Capital expect markets to continue their soft rebound from last week into month-end, with the next major catalyst being this tariff announcement.
Tariffs are taxes imposed by a country on imported goods.
They can range from a few percent to several hundred percent, depending on the product and the countries involved.
Tariffs aim to protect domestic industries, generate revenue, and balance trade deficits.
The World Trade Organization (WTO) regulates tariffs under international law.
In 2018, the US imposed tariffs on Chinese imports, sparking a global trade war.
Tariffs can have significant economic impacts, including higher prices for consumers and reduced trade volumes.
The Personal Consumption Expenditure (PCE) data release on March 28 is expected to sway market sentiment, with bitcoin’s reaction tied to how the data shapes Fed expectations. Volatility often follows as traders adjust positions.
