Bitcoin [BTC] has recently been under significant pressure, hitting a three-month low of $85k. This decline followed the release of the U.S. Consumer Confidence Report, sparking panic among investors and a consequent surge in exchange inflow.
Impact of Consumer Confidence Report
CryptoQuant reported that Bitcoin's exchange inflow exceeded 5k BTC three times in a single day following the release of the U.S. Consumer Confidence Report. The report indicated a decline in consumer confidence to an eight-month low, fueled by increasing concerns about inflation and new tariffs imposed under the second Trump administration.
Bitcoin's Exchange Inflow Dynamics
These market fears were evident in Bitcoin’s recent performance, as demonstrated by a negative Coinbase premium index. When this index is negative, it implies that U.S. investors, particularly institutions, are bearish and are selling BTC at a higher rate than they are buying.
Implications for Bitcoin
This scenario resulted in panic selling, with over 15k BTC being sent to exchanges. The influx exceeded outflow, and the exchange netflow reached a monthly high of 8.4k BTC, suggesting increased selling pressure. Unless macroeconomic conditions improve, Bitcoin may experience further losses. If these conditions worsen, Bitcoin could drop to $86k. However, if external factors stabilize, Bitcoin could start to recover and reclaim $90k.
The current situation underscores the importance of macroeconomic factors for the cryptocurrency market. Investors should closely monitor external conditions that can impact the Bitcoin market.
