The recent decline in Bitcoin's value has drawn the attention of analysts and investors amid worsening economic indicators.
Decline in the Cryptocurrency Market
Bitcoin recently breached its $112,500 support level, dipping to a new low of $112,201. Altcoins have yet to experience sharp sell-offs, but negative sentiment is expected for at least a few weeks.
Factors Influencing Bitcoin
According to the Fitch Ratings report, there is a significant weakening of consumer spending in the first half of 2025. Uncertainty in trade policy, fluctuations in equity markets, and the blow to consumer confidence are causing a reduction in household spending.
Predictions and Potential Support Levels
Economists expect the contraction in consumer spending to intensify, putting further pressure on consumer confidence. In the short term, due to anticipated comments from Powell, fears may sustain, potentially leading to a test of the $108,000 level.
Current economic conditions and uncertainties create a challenging environment for the cryptocurrency market as investors continue to monitor price changes and economic indicators.
