By Chris Hollingworth 
Bitcoin is expected to start the last trading day of March on a bearish note, potentially marking its weakest Q1 performance since 2018. Traders in both the crypto and stock markets are feeling anxious due to US President Donald Trump’s announcement of a fresh wave of 25% tariffs on cars imported to the US. The looming threat of tariffs on the pharmaceutical industry is also impacting Bitcoin’s current downward trend. Trump’s frequent mentions of April 2 as “Liberation Day,” when reciprocal tariffs will be assigned to various countries, have further shaken traders’ confidence.
As of the latest update, stock futures have already turned red, with DOW futures down 206 points and S&P 500 futures declining by 0.56%. In line with the broader equities markets, Bitcoin’s price dropped to $81,656 on March 30, marking a seventh consecutive day of lower lows.
Following a tumultuous quarter, equities markets appear poised to end the month in negative territory, with the S&P 500 down 6.3%, and the Nasdaq and DOW recording losses of 8.1% and 5.2%, respectively. Bitcoin’s decline can be attributed to weak demand in spot markets and traders derisking by refraining from opening new positions in BTC futures.
Recent economic data, including higher-than-expected inflation in core Personal Consumption Expenditures (PCE) and a sharp decline in consumer confidence as reflected in the Conference Board’s monthly index, have added to the negative sentiment. Recession probabilities have also increased, with Goldman Sachs revising its 12-month estimate from 20% to 35%, citing lower growth forecasts and deteriorating confidence levels.
Despite the bearish outlook, institutional investors continue to show interest in Bitcoin, as evidenced by net inflows to spot ETFs remaining positive. While some analysts have revised their price targets downward, institutional buying activity and increasing inflows to accumulation addresses suggest a silver lining amidst the current market uncertainty.
In conclusion, the market remains volatile, and investors are advised to conduct thorough research and exercise caution before making any investment decisions.
