The post Bitcoin Faces Uncertainty Amid Federal Reserve’s Manufacturing Decline and Economic Pressures appeared on BitcoinEthereumNews.com.

The recent plunge in the US manufacturing sector could create challenging conditions for Bitcoin as market analysts brace for ripple effects. The Philadelphia Federal Reserve’s latest report highlights significant declines in manufacturing activity, potentially impacting the crypto market’s stability. “Indicators for general activity, new orders, and shipments all fell and turned negative,” the report indicates, raising concerns about growth forecasts. US manufacturing data shows the steepest drop since 2020, raising concerns about Bitcoin’s resilience amid economic pressures and potential trade tariffs. Impact of Manufacturing Decline on Bitcoin’s Stability In recent weeks, financial analysts have observed a disturbing trend: the US manufacturing sector is facing the most significant challenges seen since early 2020. The Philadelphia Federal Reserve Manufacturing Index’s report, released on April 17, highlights a noticeable dip in overall business activity. This decline has raised alarms not only for traditional markets but also for cryptocurrencies, with experts indicating that Bitcoin could be particularly vulnerable to these developments. The report reveals that key indicators assessing economic activity, including new orders and shipments, have all turned negative. This signals a broader slowdown that could reverberate through various sectors, including the volatile world of cryptocurrencies like Bitcoin (BTC). As researchers from Bitunix noted, Bitcoin’s current price could face downward pressure if the overall economic outlook continues to worsen. Trade Tensions and Their Repercussions Amidst this backdrop of economic uncertainty, the looming threat of trade tariffs imposed by the US administration adds another layer of complexity. President Trump’s plans for sweeping tariffs could significantly impact production costs for manufacturers, ultimately cascading into financial markets, including crypto. Felix Jauvin, a macroeconomic analyst at Blockworks, expressed grave concerns over this precarious situation, stating, “Economic activity is falling off a cliff and any activity that remains, the prices are going up.” His sentiments encapsulate the anxiety felt…

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Filed under: News - @ April 18, 2025 9:20 pm