Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Bitcoin rebounded on Thursday, extending its recovery from recent losses, as cooling U.S. inflation data bolstered sentiment. However, gains remained limited due to trade war fears and ongoing recession concerns.
The world’s largest cryptocurrency rose 1.8% to $83,511.6 by 01:27 ET (05:27 GMT), following a slight improvement in risk appetite after the U.S. Consumer Price Index (CPI) came in weaker than expected.
Bitcoin Rebounds, But Trade and Recession Worries Weigh
Bitcoin had previously slumped below $80,000 this month amid strong risk aversion. While dip-buying and hopes for favorable regulation have helped it regain ground, broader market sentiment remains fragile.
Persistent concerns over a potential U.S. recession and heightened trade tensions under President Donald Trump have limited crypto’s upside.
Trump’s latest 25% tariffs on steel and aluminum took effect Wednesday, with more trade duties on Europe expected by April 2. Markets fear these tariffs could disrupt global trade, fuel inflation, and pressure the U.S. economy, potentially leading to a recession in 2025.
Despite these concerns, Trump and his cabinet have dismissed fears of a recession, though they acknowledged potential short-term economic turbulence.
Crypto Underperforms Stocks in 2025
Bitcoin has lagged behind traditional financial markets this year, losing 10% year-to-date, compared to the S&P 500’s 4.6% decline.
As a high-risk speculative asset, Bitcoin typically struggles during periods of increased volatility and economic uncertainty. The lack of clear direction on U.S. trade and economic policy has kept investors on edge, limiting crypto’s recovery potential.
