Journalist
Posted:
- U.S. Consumer’s Confidence Report showed a 7.0 points decline.
- Bitcoin suffered from negative consumer reports, with exchange inflow soaring.
Over the past day, Bitcoin [BTC] has experienced strong downward pressure, hitting a three-month low of $85k.
As the U.S. Consumer Confidence Report was released, investors panicked, leading to a massive exchange inflow.
Source: CryptoQuant
According to CryptoQuant, Bitcoin’s exchange inflow exceeded 5k BTC three times in a single day after the release of the U.S. consumer confidence report.
According to the report, consumer confidence has declined to an eight-month low due to increasing concerns about inflation and new tariffs imposed under the second Trump administration.
U.S. consumers are worried about the impact of tariffs on their purchasing power. Usually, businesses pass tariff costs to consumers, worsening inflation and reducing disposable income.
Source: Conference Board
These market fears were witnessed over the past day, with Bitcoin suffering the most. This shift in the American market following the report is evidenced by a negative Coinbase premium index.
When the Coinbase index remains negative, it suggests that U.S. investors, especially institutions, are bearish, and they are selling BTC at a higher rate than they are buying.
Source: CryptoQuant
As such, the report saw investors turn to panic selling, with over 15k BTC sent to exchanges.
Such a significant increase in exchange inflows can indicate potential selling pressure, as large holders or institutions might be moving BTC to exchanges for liquidation.
This inflow saw the exchange netflow surge to a monthly high of 8.4k BTC. Such a spike in netflow turning positive implies that Bitcoin has experienced more inflow than outflow, pointing towards more selling.
Any impact on BTC?
Notably, the rising Exchange Inflow indicates that BTC is currently experiencing high selling pressure.
AMBCrypto observed that see this rising sell pressure by the fact that the Taker Buy-Sell Ratio has turned negative and has remained in this zone over the past five days.
With this metric staying negative for a sustained period, it suggests that Bitcoin holders are selling, thus there’s a reduced demand for the asset.
Source: Cryptoquant
In conclusion, Bitcoin is experiencing strong bearish sentiments, with investors turning to selling. Therefore, the prevailing conditions position BTC for further losses unless macroeconomic conditions improve.
If these conditions fail to improve, Bitcoin could drop to $86k. Conversely, if the external factors cool down, Bitcoin will start to recover and reclaim $90k.
