Americas Crypto Market Update: Bitcoin Declines as Investors Shift to Gold Amid Economic Uncertainty

By Omkar Godbole (times are in ET unless stated otherwise) The cryptocurrency market continues its downward trend, fueled by the lack of a US government plan to purchase bitcoin as part of its strategic reserve and ongoing macroeconomic concerns. Bitcoin dropped to $80,000 on Sunday, falling below its 200-day moving average, while ether broke a key trendline with a decline below the long-standing $2,100 support level. Other major coins followed suit, posting even greater losses. "Investors are increasingly viewing bitcoin as a high-risk asset class for the first time since the Trump administration, and it is no longer serving as a reliable store of value," said Zach Burks, CEO and founder of Mintology, an NFT service provider. "As a result, many are turning to traditional 'doomsday assets' like gold, which has seen a surge in price. This shift is not surprising, given the ongoing trade tensions and global instability." The imposition of tariffs is hindering the Federal Reserve's ability to implement rate cuts, despite the ongoing decline in real-time inflation indicators. On Friday, Fed Chairman Jerome Powell stated that the central bank is awaiting greater clarity on US policies before making its next move. In Japan, the largest base pay increase in 32 years has strengthened the case for a rate hike by the Bank of Japan, driving up the nation's bond yields and the value of the yen. Historically, a strong yen has been associated with increased volatility in risk assets. However, some analysts question whether the recent market weakness, particularly over the weekend, will persist. "The low trading volumes over the weekend reduce the significance of the bearish signal," according to Alex Kuptsikevich, FxPro's chief market analyst, in an interview with CoinDesk. "In periods of low liquidity, sellers often drive prices down, but the arrival of institutional buyers can trigger a price rebound. It appears that major buyers still have sufficient liquidity to absorb the decline," Kuptsikevich added. Remain cautious and alert to market developments. Key Events to Watch: Upcoming Token Events Conferences and Meetings Token Talk By Shaurya Malwa Derivatives Positioning Market Trends: Bitcoin Statistics: Technical Analysis and Insights Crypto-Related Equities ETF Flow Updates Spot Bitcoin ETFs: Spot Ethereum ETFs Source: Farside Investors Overnight Market Flows Chart of the Day Market Highlights from the Weekend Ether Market Update