Bitcoin Holds Above $87K as Traders Await Tariff Developments and Key U.S. Data
Bitcoin (BTC) remained stable above $87,000 during Asian trading hours on Wednesday as investors closely monitored upcoming U.S. economic data and the potential impact of new tariffs set to take effect on April 2. With uncertainty looming, most traders opted for a cautious wait-and-see approach.
Broader crypto markets showed minimal movement over the past 24 hours. Leading altcoins, including Solana (SOL), XRP, Binance Coin (BNB), and Ethereum (ETH), posted gains of less than 3%. However, memecoins saw stronger momentum, with Dogecoin (DOGE) outperforming with a 5.5% increase—its second consecutive day of gains.
Alongside DOGE, other speculative tokens like Pepe (PEPE) and Mog (MOG) continued to rally, reinforcing their role as high-beta assets that often track Ethereum’s strength. Meanwhile, Shiba Inu (SHIB) surged 11%, driven by a shift toward riskier assets and a notable 228% surge in activity on its ShibaSwap exchange over the past month. Futures data shows SHIB-tracked open interest has risen by over 20% since Sunday, indicating heightened expectations for increased volatility.
Market Sentiment and Economic Uncertainty
Despite the recent gains, concerns about a potential U.S. economic slowdown persist. A sharp reversal in momentum trades across equity markets has led many fund managers to take a defensive stance.
“We expect markets to continue their gradual rebound from last week into the end of the month, with the next major catalyst being the ‘Liberation Day’ reciprocal tariff announcement from Trump on April 2,” said Augustine Fan, Head of Insights at SignalPlus, in a message to CoinDesk. He noted that speculation of a softer tariff stance could help ease some of the recent technical damage in U.S. stocks, potentially fueling a broader global market recovery alongside gains in European and Chinese equities.
Fan also highlighted crypto’s close correlation with equities in the short term, stating, “We don’t see a unique crypto-specific catalyst for now, but recent M&A activity involving Coinbase and Kraken reinforces confidence that the long-term bull market remains intact.”
Meanwhile, analysts at QCP Capital pointed out that historically, the second quarter—particularly April—has been a strong period for risk assets.
“The S&P 500 has averaged an annualized return of 19.6% in Q2, while Bitcoin has historically recorded its second-best median performance during this period, trailing only Q4,” QCP said. However, options traders remain cautious, particularly regarding the evolving tariff situation.
Key Economic Data Ahead
Traders are now turning their attention to the upcoming Personal Consumption Expenditure (PCE) report, set for release on March 28. The PCE index is a key inflation gauge that tracks consumer spending trends and plays a crucial role in shaping Federal Reserve interest rate decisions.
Higher-than-expected PCE readings could indicate rising inflation, increasing the likelihood of rate hikes that may dampen risk appetite and put downward pressure on Bitcoin. Conversely, a lower PCE figure could signal controlled inflation, potentially leading to rate cuts or a more accommodative policy stance, which could boost liquidity and support Bitcoin’s price.
With market participants closely watching both tariff developments and economic data, Bitcoin’s near-term price action is likely to be influenced by shifting investor sentiment and broader macroeconomic trends.
