Bitcoin maintained its position above $87,000 during the Asian afternoon hours on Wednesday as traders kept a close eye on U.S. data releases and the impending implementation of U.S. tariffs on April 2. Most traders adopted a wait-and-see approach.
The major cryptocurrencies saw minimal changes in the last 24 hours, with Solana’s SOL, XRP, BNB Chain’s BNB, and ETH rising by less than 3%, while DOGE outperformed with a 5.5% increase.
DOGE has seen gains for the second consecutive day, along with PEPE and MOG, indicating a trend where these tokens act as a speculative bet on the strength of ETH.
SHIB surged by 11% due to a shift towards riskier meme coins and a significant increase in trading volume on its ShibaSwap exchange in the past month. Open interest in SHIB futures has risen by over 20% since Sunday, signaling expectations of increased volatility.
Despite concerns about a potential U.S. economic slowdown, some money managers have shifted to a defensive mode in response to the unwinding of momentum trades in equities.
Market analysts anticipate a rebound in markets leading up to the end of the month, with a crucial announcement regarding reciprocal tariffs on April 2. The recent M&A activity in the crypto industry has instilled confidence in a long-term bullish market outlook.
QCP Capital traders noted that historically, the upcoming quarter, particularly April, has been favorable for risk assets, with the S&P 500 and Bitcoin showing strong performance during this period. Options traders remain cautious, awaiting further developments in the tariff situation and closely monitoring the upcoming PCE data release.
The PCE index, which measures inflation across various consumer expenses, has a significant impact on Fed interest rate decisions. Traders will closely watch the upcoming PCE data release on March 28, as it could influence market sentiment and potentially lead to volatility in Bitcoin prices based on the Fed’s response.
