Bitcoin may drop below $80,000 this week, as indicated by digital asset research company 10x Research.
In a recent update on X, the firm highlighted increasing uncertainty regarding U.S. tariffs and rising inflation as significant risk factors impacting Bitcoin (BTC) and the overall financial markets.
The analysis points to unexpectedly high U.S. core Personal Consumption Expenditures data, suggesting that inflation remains a pressing issue. Additionally, changing statements from former U.S. President Donald Trump regarding tariffs have created further uncertainty, raising concerns that aggressive trade measures might negatively affect economic sentiment.
Weak PMI Data
10x Research also flagged the upcoming U.S. ISM Manufacturing PMI report as a possible catalyst for additional declines. Should the figures fall short of expectations, risk aversion could rise, influencing the cryptocurrency market negatively.
Moreover, robust employment data might postpone any action from the Federal Reserve, diminishing the likelihood of a market recovery.
Despite these challenges, the firm observed that market volatility remains low, with the VIX showing subdued levels—suggesting traders could be underestimating the potential for further declines.
With several risk-off catalysts at play, Bitcoin’s recent recovery appears precarious. If macroeconomic pressures continue, BTC may experience additional downturns in the upcoming days.