The price of the Bitcoin area may take after the US Federal Reserve reports some of the worst manufacturing data in recent history, according to some cryptocurrency analysts.
On April 17, the Philadelphia Federal Reserve Manufacturing Index-a monthly survey of 250 manufacturers based in US- reported The sharp decline in general business activity since 2020.
Data puts Bitcoin (Btc) “Under short term pressure,” researchers in Bitunix, a crypto exchange, Says In a post on the X platform. They added that Bitcoin could still see a “powerful comeback” if its price holds more than $ 83,000 per coin.
On April 18, Bitcoin traded at about $ 84,000 per coin, according to Data From Google Finance.
The Federal Reserve’s Bearish Reserve report came as factories for the impact of US President Donald Trump’s plans to impose sweeping tariffs on US imports, which potentially raise production costs for manufacturers.
“(I) NDICATORS for general activity, new orders, and shipments all fell and became negative … suggest (ING) covered expectations for growth over the next six months,” reports Says.
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Bad Omen for Crypto?
Analysts say the combination of rising prices and slowing production can deal with a blow to financial markets, including cryptocurrencies. The rising prices limits the ability of central banks to support markets in a collapse.
“Economic activity is falling into a cliff and any activity that remains, prices will climb,” Felix Jauvin, a blockworks macroeconomic analyst, Says In a post on the X platform.
This is a “(a) bsolute worst scenario for policy manufacturers here especially with no significant idea of how permanent tariffs will be,” he added.
However, it became bitcoin More resilient to recent macroeconomic shocks Rather than stocks or other cryptocurrencies, Binance said in an April research report.
Since Trump announced his tariff plans on April 2, Bitcoin exchanged almost flat after the first decline but more than 10%, showed Google’s financial data. Meanwhile, the S&P 500 – an index of US stocks – still drops around 7%.
“Even in previous tariff announcements, the BTC has shown some signs of stability, which holds firmly or rebound in the days when traditional risk ownership,” Binance said.
Trump had earlier sought to impose double digit levies on almost all foreign goods but eventually paused planned tariffs in some countries.
He still wants to put high taxes on many Chinese imports, causing concerns with crypto executives afraid of a trade war can damage blockchain networks.
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