Bitcoin remained stable beyond $87,000 on Wednesday Asian afternoon as traders continued to monitor US data releases and how US tariff collections will unfold from April 2nd.
The majors have changed little over the last 24 hours as Solana’s Sol, XRP (XRP), BNB chain BNB and ether (ETH) rose below 3%, so Memecoin Dogecoin (Doge) performed with a 5.5% jump.
This was the second straight day for Doge’s profit, along with the continued bumps of Pepe (Pepe) and Mog (MOG). This is because the tendency between these tokens to act as a “beta bet” of etheric strength showed no indication that it would return.
Elsewhere, Shiba Inu (Shib) zoomed 11%, backed by high-risk memes and 228% jumps on native Shibaswap Exchange over the past 30 days. Open interest in SHIB tracked futures has risen by more than 20% since Sunday, data shows, indicating expectations for further volatility.
However, concerns about the US economic slowdown remained, but the rapid rewind of stock momentum trading led to money managers who would one day retreat into full defensive mode.
“The market is hoping to continue soft rebounds from last week until the end of the month. The next major catalyst was the announcement of the mutual tariffs for the ‘liberation date’ from Trump, scheduled for April 2,” Signalplus’s director of insights Augustine Fan told Koindsk in a telegram message. “The softer tariff response rumors will go a long way in recovering some of the recent technical damages on US stocks and will help trigger global rally along with the recent EU/Chinese stock jump.”
“While Crypto will remain a close proxy for stocks in the near future as we don’t see a unique catalyst for the time being, we believe the long-term bull market will continue to live out,” fans added.
Meanwhile, traders at QCP Capital said in Tuesday’s broadcast that April and April in particular have historically been one of the best periods for risky assets, second only to the festival rally in December.
“The S&P 500 produced an average annual revenue of 19.6% in the second quarter, while Bitcoin recorded its second-best median performance during this stretch.
“The options market remains cautious. Korskew has not moved to call meaningfully. Korskew only appears after June, suggesting that traders are waiting to see how the tariff situation arises,” they said.
The PCE index captures inflation (or deflation) across a wide range of consumer costs and reflects changes in consumer behavior.
PCE released every month is said to affect the Fed’s interest rate decisions. High PCE measurements indicate an increase in growth, potentially lowering the price of risk appetite and pressure Bitcoin down as investors support safer assets. Conversely, low data in PCE data suggests tame inflation rates, possibly leading to rate reductions or stable policies, increasing liquidity and supporting the price of Bitcoin as a speculative asset or inflation hedge.
The next release is March 28th, and could stir market sentiment as Bitcoin responses are tied to how data is expected.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
