Why are Bitcoin and Altcoini like XRP, Pepe, Vechain and descend?

Bitcoin, AltCOins and Stock Exchange are Wednesday after a series of weak economic data from the United States.

Bitcoin (Btc) The price dropped below $ 94,000, much lower than this month of high of $ 96,000. Similarly, Top AltCOins like Ripple (XRP), Pepe (Pepe) and Vechain (Veterinarian) dropped by over 5% in the last 24 hours.

The total market capitalization of all cryptocurries has been reduced by 3.6% in the same period, drop to 3.03 billion dollars. The American joint-stock indices were also in red, and the Dow Jones industrial average was reduced by about 150 points, and the Tech-heavy Native 100 fell about 170 points.

The US economy has decreased to Q1

The decline through risky funds followed freedom of more weak economic indicators. The report showed that the private sector added only 62,000 jobs in April – considerably below average 114,000 and a steep decline of 147,000 March.

Another report has revealed that the US economy was contracted in the first quarter, reducing 0.3%. It marked the sharp reversal of 2.4% spreading in K4 last year.

Inflation also stubbornly remained above 2.0% of the goal of federal reserves. Carefully observed expenditures for personal consumption (PCE) slowed to 2.3% in March, still slightly higher than expected 2.2%.

These figures followed a report from the conference, which showed consumer confidence at the lowest level in years.

As a result, Bitcoin and most Altcoin, including Pepe, Vechain and KSRP, fell as if investors increased increasingly to lean us recession. In the statement, Mark Zandi, the older economist in Moody’s, warned that the economy was on the recession.

They also refused after Trump insisted on his tariffs on most goods of teaching. In a Truthsocial postHe said Tariffs will soon begin to enter into force. This statement is mirror what he said times That he will declare a complete victory if the United States had great tariffs on foreign imports.

Silver lining for bitcoin and altcoins

On the positive side, More Tariffs The import can lead to the US recession such as Mark genders predicted. The recession would lead to lower consumer spending and helping reduce inflation.

The more importantly, if the federal reserve reacts by reducing interest rates, Bitcoin and other Altcoini can benefit. This also explains why the returns of American bonds have fallen after GDP data.

Historically, the prices of cryptocurrency gathered when the Fed enters the speed cutting cycle. For example, Bitcoin and most Altcoins increased during a pandemic as a fed foot to zero and realized aggressive quantitative relief.