Concerns About Inflation in the US and Trade Tensions Hindering Bitcoin Price

Amidst the global market full of fluctuations, concerns about inflation in the US along with trade tensions are exerting considerable pressure on the price of Bitcoin as well as other cryptocurrencies. Recent studies from QCP show that despite efforts to stabilize the economy, concerns about inflation persist, threatening to affect investor sentiment. Pressure from trade tensions According to QCP's analysis on Wednesday, a 10% tax rate applied to some Chinese goods is confirmed to be the sole negative impact in the current trade context. In the event of an agreement, Canada and Mexico may avoid the 25% tax rate applied to some goods; however, steel and aluminum products will face an increase in tax rates from 10% to 25% starting from 12/03. These fluctuations not only affect the traditional economy but also create a wave of negative impact on the cryptocurrency market. Bridge and pressure in the cryptocurrency market The crypto market is currently under strong pressure with many notable fluctuations. Solana, one of the blockchain platforms of interest, is about to unlock 30 million tokens on 1/03, which could create changes in supply and demand in the market. At the same time, major currencies such as Bitcoin (BTC) and Ethereum (ETH) are experiencing a weakening trend, partly due to risk prevention actions related to FTX issues and adjustments of funds related to SOL. Another phenomenon that is equally noteworthy is the sudden surge and drop of LIBRA – a new meme coin from Argentina. After receiving support from the president, the value of LIBRA skyrocketed to 4 billion USD, but then plummeted by 89%, causing significant losses to thousands of investors. The strategy of large corporations Meanwhile, major corporations are also making notable strategic moves. Micro Strategy (MSTR) has continuously held 478,740 BTC for the past two weeks without any additional purchases. Furthermore, the company is proposing to privately sell $2 billion worth of high-yield convertible notes to enhance its Bitcoin reserves, demonstrating long-term confidence in the potential of this digital currency. Opinions on the Bitcoin price trend Analysts from QCP believe that although Bitcoin is currently maintaining a stable price around 95,000 USD after dropping to nearly 93,000 USD, the short-term potential for pushing prices higher still faces difficulties due to a lack of strong stimulus factors. Over the past two weeks, Bitcoin has been trading in the range of 94,000 to 100,000 USD. Specifically, on Tuesday, BTC declined and found support around the lower edge of the correction range, then slightly increased the following day. As of the time of writing on Thursday, the price of this digital currency is still holding at around 97,000 USD. Expert market view Mr. Ruslan Lienkha - Market Analysis Director of YouHodler, in an exclusive interview with FXStreet, said: "Inflation trends vary by country, but in the U.S., inflation remains high and even shows signs of a slight increase, recently returning to 3%. With the Federal Reserve's target of 2% seeming distant, interest rates are expected to remain high for a long time." According to Lienkha, a prolonged high interest rate environment will create significant selling pressure in the market, making it difficult for stock indices to show strong growth. This also contributes to Bitcoin continuing to fluctuate within a narrow price range, with no clear signs of short-term growth direction. Conclusion A synthesis of macroeconomic factors, trade tensions, and internal fluctuations in the cryptocurrency market suggests that the current volatility may only be temporary. However, until new stimulating factors emerge, the adjustment trend of Bitcoin is likely to persist, creating a period of uncertainty for investors in search of sustainable growth opportunities.