Bitcoin falls on concerns of tariff war

Asset Market Declines Amid Concerns Over US Tariff Rate Announcement Next Month
BTC Drops 1.4%... Altcoins Record 2-5% Decline
Cointelegraph: "BTC Facing Significant Volatility"

The cryptocurrency market declined on the 31st amid concerns that Trump's trade war could escalate on the 2nd of next month.

President Trump previously announced that he would finalize additional tariffs on major trading partners on April 2nd. If Trump imposes tariffs exceeding 20% on major trading partners as predicted, the market declined on the 31st due to concerns about potential global inflation.

The US February Personal Consumption Expenditures (PCE) released last week is also believed to have driven the cryptocurrency market's decline.

The February PCE price index released on the 28th rose 0.4% monthly and 2.8% annually, exceeding market expectations (0.3% and 2.7% respectively). Projections that the February PCE could prevent the Federal Reserve from cutting interest rates further contributed to the cryptocurrency market's decline.

On the 31st, Bitcoin (BTC) dropped approximately 1.44%, with major altcoins recording declines of 2-5%.

◇Bitcoin = The Bitcoin price on Upbit at 4 PM on the 31st was 121.9 million won. Bitcoin's dominance was 62.33%.

According to on-chain analysis platform Sigbit, the long and short betting ratios in the Bitcoin futures market were 65.86% and 34.14% respectively.

Cryptocurrency media Cointelegraph reported that Bitcoin could face high volatility in the short term based on on-chain data.

Cointelegraph noted that the market has already anticipated Trump's announcement, and the cryptocurrency market, including Bitcoin, has begun declining. The basis is the decrease in Bitcoin spot trading volume alongside the US market's decline and futures investors' passive betting positions.

Cointelegraph stated, "The demand in the spot market has already weakened due to Bitcoin's steady price decline, and betting on specific positions in the Bitcoin futures market is decreasing. Investors are betting on risk reduction."

◇Rising Coins = At 4 PM on Upbit on the 31st, Layer Zero (ZRO) recorded the largest increase, rising 4%.

The Layer Zero project specializes in 'cross-chain messaging', connecting different blockchain networks. Major investors include Coinbase Ventures and Binance Labs.

Layer Zero's utility token has a total supply of 1 billion.

◇Fear and Greed Index = The digital asset Fear and Greed Index provided by Alternative remains at 34 points, maintaining the 'Fear' stage. The fear stage (20-39) is a period of increased cryptocurrency price volatility and trading volume, indicating a price decline. There is a high possibility of short-term bottom formation, so caution is advised when buying.

The Relative Strength Index (RSI) provided by Sigbit is 32.4, recording a 'neutral' state. The RSI measures the relative strength between upward and downward price pressures for a specific asset and indicates overbought and oversold levels.

Reporter Seung-won Kwon ksw@blockstreet.co.kr