Update the encryption market: With the sale of Wall Street, does Bitcoin offer strength to the coming weeks?

Financial markets witnessed a sharp sale last Friday, as concerns about inflation and commercial tensions sent shares. Wall Street struggled with renewable inflation pressure, while the uncertainty surrounding the definitions contributed to the increasing fluctuations.

Selling stock market: major drivers

The Dow Jones industrial average decreased by 1.6 %, watering more than 700 points. The S&P 500 % decreased, and the Nasdaq Stock Exchange led the decrease with a loss of 2.7 %. Technology shares were among the most difficult successes, with major players such as Apple AaplMicrosoft MsftAmazon amzn It suffers from huge declines.

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The sales process was partially operated by the most hot personal consumption expenses index, which showed 0.4 % in the month of the month and 2.8 % on an annual basis. This stubborn inflationary trend is still a concern for the Federal Reserve, which targeted the target of inflation by 2 %.

American consumer feelings decreased to further exacerbation of the market, as consumers fell in March to 57, the lowest reading of it since November 2022, according to the University of Michigan. Investors’ reaction was also negatively to escalate trade tensions, with the president
Donald Trump Refirming his commitment to definitions, especially targeting foreign car imports. The Federal Reserve Index at Atlanta GDP expected a 2.8 % decrease in the US GDP for the first quarter, which raised concerns about the slowdown in economic growth.

The spread of the market defeat on a large scale, as the S&P 500 decreased by 1.87 % to 5,587.11 points, the Nasdaq Stock Exchange decreased by 2.51 % to 17357.64 points, and DOW slides 1.62 % to 41,612.69 points. The future interest rate contracts suggest 76 % that the Federal Reserve will reduce interest rates by 25 basis points by June, according to CME Fedwatch Tool.

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Bitcoin market performance and encryption

Amid Wall Street’s shrinkage, Bitcoin also faced pressure, decreasing by 3.91 % of writing. The broader Altcoin market, including ETHEREUM, has witnessed a 4.75 % more severe decrease. While the decline in the stock market was largely due to the fears of inflation and doubts related to trade, the decrease in the Crypto market reflects broader morale for investors.

However, Bitcoin’s ability to retain the main support levels in the coming days will be crucial in determining whether it can separate it from traditional markets and show strength.

Historically, Bitcoin has shown flexibility after sharp corrections in stocks, and often flourished faster than traditional assets. However, on the other hand, sales before the stock market also witnessed.

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Look forward: Will Bitcoin stop?

When we look at the relative strength, Bitcoin has stood somewhat well while retreating in American stocks.

In early November, when Trump won the elections, all markets witnessed great gatherings, especially encryption, and Trump showed that he is a supporter of profit. Since then, the S&P 500 has regained the Trump gathering and is now circulating without its lowest levels in November, while Bitcoin is still above the election drop.

The average or trading investor should know that Bitcoin has been historically circulated along with other risk markets. However, it was originally created in response to the 2008 financial crisis as a central alternative to the traditional banking system.

The question now is whether we will see a shift in this model, as Bitcoin has proven to be a real hedge in times of economic uncertainty.

There is historical evidence to support the idea that Bitcoin suffers from strong repercussions or bounces in front of the stock market.

A newer example of this current power can be shown in Bitcoin through the depression formed in the candle bar 11 March.

This was the minimum in Bitcoin where S&P provided the lowest level on March 13.

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Completion

Bitcoin showed noticeable power compared to the stock market during this recession.
However, this does not mean that it cannot decrease.

If the shares continue to the struggle, Bitcoin can follow the same trend, as it is historically shown. But as long as Bitcoin remains higher than its elections, it has the ability to maintain its current strength and can see sharp marches if the arrows are strengthening or stopping in the coming weeks.

Monitoring the main support levels and market structure will be very important while moving in this volatile period.

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