Bitcoin price rebound breaks down before key level is hit — Here is why
Bitcoin’s upside appears to be capped by recession risks, geopolitics and investors’ anxiety over Friday’s crypto summit at the White House
Bitcoin (BTC) gained 6.8% between March 5 and March 6, briefly reclaiming $92,000. However, the trend reversed after the S&P 500 fell 1.3%, triggered by a warning from Philadelphia Federal Reserve President Patrick Harker about the US economy. Other factors also kept Bitcoin’s price below $95,000, such as rising tensions in Ukraine and uncertainty over potential US digital asset strategic reserves.
S&P 500 futures (left) vs. Bitcoin/USD (right). Source: TradingView / Cointelegraph
Philadelphia Fed president Harker said there is growing evidence that the consumer sector is “under stress,” especially for lower-income groups, according to YahooFinance. Harker backed a “pragmatist” approach for the US central bank “in this environment of uncertainty” while adding that price pressures will “continue to retreat.” Harker’s comments suggest support for bigger rate cuts by the Fed, but they do not signal strength for the economy.
