Bitcoin Battles to Retain $90,000 as Global Markets Face Turmoil

US Markets Under Pressure

Concerns about the Federal Reserve’s independence have negatively impacted the US markets. Both the US dollar and treasury bonds started the week on a weak note. Powell’s statement about feeling threatened signifies the latest episode in Trump’s series of assaults on the Fed’s independence. Moreover, speculation about Japanese Prime Minister Sanae Takaichi calling for early elections is also unsettling global markets.

Despite the rocky start, US stock markets will be observing the earnings reports from major banks and asset managers in the coming days. These reports could potentially boost the market as long as the debates over the Fed’s independence do not escalate.

Noteworthy events include Fed’s Bostic participating in a Q&A session with the CEO of Intercontinental Exchange and NYSE President Jeffrey Sprecher at 20:30. Fed’s Barkin is scheduled to speak at an event organized by the NC Chamber and North Carolina Bankers Association at 20:45. At 23:30, Trump will attend a signing ceremony, where he may make further announcements.

Current State of Cryptocurrencies

Bitcoin has faced ongoing rejections from the support line of the bear flag, which was breached in December, failing to secure closures above it. The continuation of weakness amid a reversal in the overall trend is concerning. This, coupled with the resurgence of debates on the Fed’s independence coinciding with the Supreme Court’s tariff decision this week, amplifies market pressure.

The short-term outlook for both Bitcoin and altcoins is not promising. The transient nature of the MSCI decision, looming court rulings, and last week’s employment data, which work against interest rate cuts, present challenges. Should the upcoming inflation data exceed expectations, sudden declines in cryptocurrency values could occur.

Ethereum is on the verge of losing the $3,100 level once more, and XRP Coin, dipping below the $2.08 support, signals further deep declines for major altcoins.