Bitcoin's price fell to $89,400 amid global events. Political tensions and economic data influence the crypto market.
Why Did Cryptocurrencies Drop?
As U.S. markets opened, the positive sentiment surrounding cryptocurrencies began to dissipate. The President of Ukraine indicated that peace with Russia is still very far away. Trump had previously aimed for a significant step towards a peace agreement by April.
Political Tensions Affecting the Market
Despite the recently strained relations, Ukrainian President Volodymyr Zelensky expressed his expectation to continue receiving American support. However, Trump disagrees and may soon restrict spending for Ukraine. Additionally, Canadian Energy Minister Wilkinson stated, “Canada will retaliate if the U.S. imposes tariffs.” These statements impose pressure on the market.
Economic Data and Its Consequences
The Chief Economist of S&P in the U.S., Williamson, commented on the recent PMI data, stating, “The PMI reaching its highest level in 32 months indicates only an improvement that may be deeply rooted in the manufacturing sector’s health.” These data keep Bitcoin’s price below $90,000.
The current situation with Bitcoin demonstrates high dependence on political and economic factors. Amid the uncertainty, the cryptocurrency price remains volatile.
