Bitcoin’s price declined on April 10, failing to sustain its opening gains, despite a drop in inflation rates announced by the US Bureau of Labor Statistics (BLS). Despite the positive inflation data, US stocks showed no signs of relief at the opening, with the S&P 500 and Nasdaq Composite Index dropping by 3% and 3.7%, respectively.
Trading data from Cointelegraph Markets Pro and TradingView showed Bitcoin’s price volatility spike around the release of the March Consumer Price Index (CPI) numbers, which came in below expectations, revealing a slowing down of inflationary forces despite disruption due to US trade tariffs.
The BLS press release stated that the all items index had risen 2.4% for the 12 months ending March, down from a 2.8% increase in February. The all items less food and energy index also rose 2.8% over the last 12 months, marking the smallest 12-month increase since March 2021.
While the improving inflation numbers could be considered a tailwind for risk assets, US stocks were not in a forgiving mood at the opening.
Trading resource The Kobeissi Letter suggested that markets believe the recently strong jobs report and cool inflation data give Trump the “green light” to continue the trade war. They acknowledged, however, that the implications of rapidly declining inflation, something that tariffs had yet to influence, could be significant.
Turning to Bitcoin’s price action, traders were adopting a wait-and-see approach after the US paused the majority of its tariff implementations for 90 days. For popular trader Daan Crypto Trades, a reclaim of at least $83,000 would be necessary for bulls to take control.
Keith Alan, co-founder of trading resource Material Indicators, analyzed the market and identified key levels, such as the 21-day and 50-day simple moving averages (SMA), that bulls would need to overcome for a sustained price rebound. Alan also highlighted that large-volume traders, including the infamous “Spoofy the Whale,” play a significant role in influencing price action.
In summary, despite positive inflation data, US stocks and Bitcoin’s price showed signs of bearish sentiment, with markets remaining cautious after the US paused its tariff implementations. Traders will be closely watching Bitcoin’s behavior around key levels and the influence of large-volume traders to determine if a sustained rebound can be achieved for Bitcoin.