{"id":125007,"date":"2025-03-13T15:18:49","date_gmt":"2025-03-13T15:18:49","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125007"},"modified":"2025-03-13T15:18:49","modified_gmt":"2025-03-13T15:18:49","slug":"bitcoin-price-drops-2-as-falling-inflation-boosts-us-trade-war-fears","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125007","title":{"rendered":"Bitcoin price drops 2% as falling inflation boosts US trade war fears"},"content":{"rendered":"

Source: Cointelegraph.com NewsBitcoin (BTC) shrugged off gains at the March 13 Wall Street open as US inflation markers continued to fall.BTC\/USD 1-hour chart. Source: Cointelegraph\/TradingView
\nGood news is bad news? Bitcoin follows stocks lower
\nData from Cointelegraph Markets Pro and TradingView showed BTC\/USD circling $81,500, down 2.3% on the day.
\nThe February print of the Producer Price Index (PPI) came in below median expectations, copying the Consumer Price Index (CPI) results from the day prior.
\n\u201cOn an unadjusted basis, the index for final demand advanced 3.2 percent for the 12 months ended in February,\u201d an accompanying press release from the US Bureau of Labor Statistics\u00a0(BLS) stated.
\n\u201cIn February, a 0.3-percent increase in prices for final demand goods offset a 0.2-percent decline in the index for final demand services.\u201d
\nUS PPI 1-month % change. Source: BLSAlready a double tailwind for crypto and risk assets, cooling inflation also stunted a rebound in US dollar strength, as viewed through the US Dollar Index (DXY).
\nUS Dollar Index (DXY) 1-hour chart. Source: Cointelegraph\/TradingViewDespite this, both stocks and crypto remained unmoved, leading trading resource The Kobeissi Letter to tie in the ongoing US trade war.
\n\u201cAs we have seen, the market has had a very MUTED reaction to inflation data that would’ve previously sent the S&P 500 SHARPLY higher,\u201d it wrote in part of its latest analysis on X\u00a0
\n\u201cWhy is this the case? This data provides President Trump a reason to keep doing what he is currently doing.\u201d
\nS&P 500 1-hour chart. Source: Cointelegraph\/TradingViewKobeissi explained that trader war efforts may now intensify given slowing inflation.
\n\u201cThis is exactly why markets are not recovering losses following some of the best inflation data in months,\u201d it continued, suggesting traders should \u201cbuckle up for more volatility.\u201d
\nA week before the Federal Reserve\u2019s next interest rate decision, market expectations for financial easing remained similarly lackluster, with the chance of a cut at just 1%, per data from CME Group\u2019s FedWatch Tool. Odds for the Fed\u2019s May meeting were at 28%.
\nFed target rate probabilities. Source: CME Group\u201cThe Fed has already decided: steady course, no cuts this FOMC. Powell made that clear last week,\u201d popular crypto trader Josh Rager told X followers earlier in the week, referencing a recent speech by Fed Chair Jerome Powell.\u00a0
\n\u201cRate cuts? More likely in May\/June, not March.\u201d
\nBTC price inertia leaves key resistance intact
\nBitcoin price action thus sat between bands of buy and sell liquidity on exchange order books, with the 200-day simple moving average (SMA) in place as resistance.
\nRelated: Bitcoin whales hint at $80K \u2018market rebound\u2019 as Binance inflows cool
\nFor Keith Alan, co-founder of trading resource Material Indicators, this trendline, which typically functions as support during Bitcoin bull markets, was the nearest important level to reclaim.
\n\u201cBitcoin faces strong resistance at the 200-Day MA for the 4th consecutive day,\u201d he summarized on X.
\nReferring to Material Indicators\u2019 proprietary trading tools, Alan concluded that such a reclaim was unlikely on the day, notwithstanding surprise catalysts in the form of announcements from the US government.
\nBTC\/USD 1-day chart. Source: Keith Alan\/XMeanwhile, data from monitoring resource\u00a0CoinGlass\u00a0showed key upside resistance clustered immediately below $85,000.
\nBTC liquidation heatmap (screenshot). Source: CoinGlassThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsBitcoin (BTC) shrugged off gains at the March 13 Wall Street open as US inflation markers continued to fall.BTC\/USD 1-hour chart. Source: Cointelegraph\/TradingView Good news is bad news?… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125007"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125007"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125007\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125007"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}