Bitcoin Volatility Reflects Bearish Trend Amid Inflation Concerns

On March 28, 2025, Bitcoin experienced significant market volatility as its price fell to $83,850, indicating a bearish trend. Analysts highlighted the influence of rising U.S. inflation, measured by the Core PCE index at 2.8%, which may delay Federal Reserve rate cuts, negatively impacting Bitcoin and other risk assets. Despite a recent rally, trading below the 200 EMA suggests bearish momentum, with traders holding significant short positions. The market's cautious sentiment is further emphasized by a potential strategic Bitcoin reserve by the U.S. government, contributing to market uncertainty. Meanwhile, altcoins like Cardano and Ethereum remain influenced by Bitcoin's price movements, with significant trading volumes reflecting heightened market activity. This dynamic underscores the interconnectedness of Bitcoin with the broader cryptocurrency market, where its fluctuations impact altcoins and overall market sentiment.