Analysts brace for Bitcoin slide on gloomy US manufacturing data
Bitcoin's spot price may decline following the US Federal Reserve's report indicating significant drops in manufacturing activity, the worst since 2020. The Philadelphia Federal Reserve Manufacturing Index revealed negative trends in general activity, new orders, and shipments, suggesting weak growth expectations. Analysts from Bitunix noted that Bitcoin could face short-term pressure but might rebound if it remains above $83,000. As of April 18, Bitcoin was trading around $84,000. The report coincides with US President Trump's plans for tariffs on imports, which could increase production costs. Rising prices and slowing production may negatively impact financial markets, including cryptocurrencies. Despite these challenges, Bitcoin has shown resilience compared to stocks, remaining relatively stable since the tariff announcement on April 2, while the S&P 500 has dropped approximately 7%. Concerns persist among crypto executives regarding potential trade wars affecting blockchain networks.
