TechFlow news, March 31 — According to analysis by 10x Research, Bitcoin's rally over the past three weeks has lost momentum. Higher-than-expected core PCE (Personal Consumption Expenditures) data indicate rising inflation—partly driven by Trump's tariff policies—which appears to be affecting consumer confidence. One-year inflation expectations have surged to 5.0%, weakening risk asset performance, with Bitcoin expected to fall below $80,000 this week. Multiple risk-off factors could pressure equities and spill over into the cryptocurrency market.
The analysis notes that while Trump initially suggested moderate tariff measures, his stance has shifted toward a more aggressive approach. Markets had previously assumed that implementing tariffs would take time, leaving room for negotiations. However, this expectation reversed last week, as concerns grow that tariffs may be imposed first, followed by prolonged negotiation processes. Additionally, weak ISM manufacturing PMI data could intensify market pressures. If U.S. labor data remain strong, it may delay Federal Reserve intervention. The VIX (fear index) remains low, suggesting many traders may be underestimating near-term downside risks.
