Bitcoin Plunges to Three-Month Low Amid U.S. Consumer Confidence Slump

Bitcoin's U.S. market sentiment has turned negative, as indicated by a recent report. The U.S. Consumer Confidence Report showed a significant decline of 7.0 points, which negatively impacted Bitcoin's market performance. Over the past day, Bitcoin experienced strong downward pressure, reaching a three-month low of $85k.

The release of the U.S. Consumer Confidence Report led to investor panic, resulting in a massive exchange inflow. According to CryptoQuant, Bitcoin's exchange inflow exceeded 5k BTC three times in a single day following the report. The report revealed that consumer confidence has declined to an eight-month low due to increasing concerns about inflation and new tariffs imposed under the second Trump administration.

U.S. consumers are worried about the impact of tariffs on their purchasing power, as businesses typically pass tariff costs to consumers, worsening inflation and reducing disposable income. These market fears were reflected in Bitcoin's performance over the past day, with the cryptocurrency suffering the most. This shift in the American market following the report is evidenced by a negative Coinbase premium index.

When the Coinbase index remains negative, it suggests that U.S. investors, especially institutions, are bearish and selling BTC at a higher rate than they are buying. As a result, investors turned to panic selling, with over 15k BTC sent to exchanges. This significant increase in exchange inflows can indicate potential selling pressure, as large holders or institutions might be moving BTC to exchanges for liquidation.

The exchange netflow surged to a monthly high of 8.4k BTC, implying that Bitcoin has experienced more inflow than outflow and pointing towards more selling. The rising exchange inflow indicates that BTC is currently experiencing high selling pressure. AMBCrypto observed this rising sell pressure by the fact that the Taker Buy-Sell Ratio has turned negative and has remained in this zone over the past five days.

With this metric staying negative for a sustained period, it suggests that Bitcoin holders are selling, thus there's a reduced demand for the asset. In conclusion, Bitcoin is experiencing strong bearish sentiments, with investors turning to selling. Therefore, the prevailing conditions position BTC for further losses unless macroeconomic conditions improve. If these conditions fail to improve, Bitcoin could drop to $86k. Conversely, if the external factors cool down, Bitcoin will start to recover and reclaim $90k.