BTC at a Critical Juncture: Consumer Confidence Plummets Amid Soaring Inflation Expectations

On April 12th, COINOTAG News reported a significant drop in the U.S. Consumer Confidence Index, which fell to 50.8—the lowest since June 2022—amid growing concerns surrounding the escalation of U.S. trade tariffs. This index’s decline comes as a surprise, falling short of the anticipated 54.5. In a parallel assessment, consumers’ one-year inflation expectations have escalated to 6.7%, further complicating the economic landscape.

Interestingly, while consumer sentiment wanes, the Producer Price Index (PPI) shows a month-on-month decline, indicating a divergence between soft indicators like consumer confidence and hard data such as inflation metrics. According to analysts at Bitunix, this deterioration in consumer confidence coupled with heightened inflation pressures has adversely impacted investor risk appetite, resulting in a temporary consolidation phase within the cryptocurrency market. Bitcoin (BTC) is essential to maintain its position above the crucial support level of 80.5K to avert potential downtrends. Therefore, investors are recommended to manage their positions wisely and prioritize risk management strategies.