The US economy is facing challenges that could impact Bitcoin prices. Recent manufacturing data and increasing tax burdens highlight the current state of financial markets.
The State of the US Manufacturing Sector
The ISM manufacturing index stands at 48.7, indicating a contraction for six consecutive months. This primarily signals a slowdown in economic growth, as a weak manufacturing sector means companies are producing less and facing supply chain issues. This situation leads investors to start avoiding risk assets like Bitcoin.
Effects of Tariffs and Taxes on the Economy
Manufacturers are struggling due to tariff uncertainties and rising costs, hindering investments and leading to workforce reductions. The uncertainty concerning tariffs and tax burdens in 2025 could result in a capital market contraction, adversely impacting Bitcoin demand.
Bitcoin Price Analysis and Forecasts
According to the latest analysis, Bitcoin is priced at $111,180 but shows a downward trend after peaking at $124,000. Support at $107,000 may prove weak, and falling below this level could trigger panic selling, leading to a price around $80,000–85,000.
Current analysis suggests that economic challenges, including manufacturing contractions and tax burdens, coincide with Bitcoin price analysis, augmenting the risks of a 50% drop or more in the coming months.
