Crypto Market Volatile as U.S. Consumer Confidence Drops 15.2%

Bitunix analysts have suggested that the cryptocurrency market is experiencing short-term volatility, with an upward trend. The analysts have highlighted that Bitcoin (BTC) needs to closely monitor the support level at $80,500 and the resistance level at $85,000. This assessment comes in the context of a significant decline in U.S. consumer confidence and rising inflation expectations, which have led to a decrease in investor risk appetite.

The University of Michigan's data revealed that the initial value of the U.S. Consumer Confidence Index for April dropped to 50.8, the lowest level since June 2022. This decline is attributed to growing concerns over escalating U.S. trade tariffs. Concurrently, consumers' one-year inflation expectations surged to 6.7%. Despite this, the Producer Price Index (PPI) month-on-month rate continues to decline, indicating a decoupling of soft data and hard data.

According to the analyst's forecast, the sharp decline in consumer confidence and soaring inflation expectations have led to a decrease in investor risk appetite. This has resulted in short-term consolidation in the cryptocurrency market. The analysts advise that BTC needs to hold above the key support level at $80,500 to avoid initiating a new round of decline. Investors are recommended to control their positions in the short term and strictly adhere to risk management strategies.