Bitcoin Extends Losses Near 3-Month Low Amid Tariff Uncertainty and Inflation Fears

Bitcoin's losing streak continued for the fourth consecutive day, hovering near a three-month low at $86,383.0. This decline is attributed to ongoing uncertainty over U.S. tariffs and anticipation of the PCE inflation report, which could influence Federal Reserve interest rate decisions.

Tariff Uncertainty Impacts Crypto Markets

President Trump's mixed signals on tariffs, delaying implementation from March 4 to April 2, have introduced volatility into global markets. Historically, tariff announcements have led to market instability, prompting investors to move away from riskier assets like cryptocurrencies.

PCE Inflation Data Awaits

Investors are cautious ahead of the PCE inflation data release. While recent economic indicators suggest potential rate cuts, persistently high inflation keeps the Fed's policy uncertain. Inflation remains above the 2% target, adding to monetary policy uncertainty.

BlackRock's Spot Bitcoin ETF Sees Record Outflows

BlackRock's spot Bitcoin ETF, IBIT, experienced a record $418.1 million outflow on Wednesday. Despite this, IBIT remains the top U.S. spot Bitcoin ETF with $40.2 billion in net inflows and $51.6 billion in assets under management. Trading volume remains strong, with IBIT accounting for 72% of Wednesday's total activity.

Altcoins Show Mixed Performance

Most altcoins outperformed Bitcoin, but gains were limited. Ethereum fell 1.6% to $2,347.59, while Solana and Polygon saw increases of 2.9% and 4.1%, respectively. Meme tokens like Dogecoin and $TRUMP also saw gains of 3% and 2.8%.

The broader risk-off mood and macroeconomic uncertainties continue to influence crypto market dynamics, with investors closely monitoring geopolitical and economic developments.