Source: Yellow
Original Title: Can a US trade deficit in decline signal problems for the possible Bitcoin rally?
Original Link: https://yellow.com/es/news/can-a-us-trade-deficit-in-decline-signal-problems-for-the-possible-bitcoin-rally
Bitcoin continues testing the resistance zone of $93,500–$95,000 while the US trade deficit sharply decreases due to falling imports, not widespread strength in domestic demand, as the labor market enters a hiring pause marked by slower job creation and low unemployment.
What happened: the trade deficit shrinks
Recent US macro data point to an economy that is slowing down but has not yet fallen into clear weakness.
The trade deficit has decreased largely driven by a decline in imports, and although the improved balance may support overall growth in the short term, underlying factors suggest softer consumption ahead.
The labor market shows a clear hiring pause.
Job creation has slowed significantly while unemployment remains low, reflecting a “slow hiring, no layoffs” environment where companies retain workers but avoid expanding their payrolls.
Increased productivity allows companies to maintain output and margins with fewer hours worked, reinforcing expectations that the Federal Reserve will keep interest rates unchanged in the short term while remaining cautious about easing policy later in the year.
Why it matters: conflicting economic forces
Better trade figures mask potential pressures on transportation and logistics employment, along with risks for small businesses, suggesting that economic momentum is becoming more uneven beneath the surface.
For Bitcoin, this mixed macro scenario creates uncertainty around risk appetite.
Meanwhile, Bitcoin advances toward a dense supply zone defined by recent buyers at highs, with a cost basis roughly between $92,100 and $117,400.
As the price returns to this area, selling pressure at the equilibrium point is likely to increase, as holders who endured the decline seek to exit without losses, creating significant resistance above the price that suggests a further upward move will require sustained spot demand to absorb the distribution.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
6
Repost
Share
Comment
0/400
defi_detective
· 10h ago
It's good to hear that the deficit is shrinking, but why does this become bad news for Bitcoin? The Federal Reserve's tactics are really becoming harder to guess...
View OriginalReply0
ChainDetective
· 10h ago
Will the decline in deficits really crash BTC? This logic doesn't quite hold up.
View OriginalReply0
ApeDegen
· 10h ago
Is the shrinking deficit actually bad for BTC? That logic seems reversed... A strong dollar isn't necessarily a bad thing, it mainly depends on how the Federal Reserve handles it.
View OriginalReply0
GamefiHarvester
· 10h ago
Is shrinking deficits actually a bad signal? This logic is a bit convoluted... I've always said that macroeconomic data isn't directly related to cryptocurrency prices. Those who keep trying to find a correlation are bound to suffer losses.
View OriginalReply0
ser_we_are_ngmi
· 10h ago
Is the deficit shrinking? Ha, can this logic be linked to BTC's upward trend? I remain skeptical...
View OriginalReply0
NFTragedy
· 10h ago
Lowering deficits? Isn't that good news? How can it still drag down Bitcoin... The Federal Reserve's combination of measures is really impressive.
Can a decreasing US trade deficit indicate problems for the potential Bitcoin rally?
Source: Yellow Original Title: Can a US trade deficit in decline signal problems for the possible Bitcoin rally?
Original Link: https://yellow.com/es/news/can-a-us-trade-deficit-in-decline-signal-problems-for-the-possible-bitcoin-rally Bitcoin continues testing the resistance zone of $93,500–$95,000 while the US trade deficit sharply decreases due to falling imports, not widespread strength in domestic demand, as the labor market enters a hiring pause marked by slower job creation and low unemployment.
What happened: the trade deficit shrinks
Recent US macro data point to an economy that is slowing down but has not yet fallen into clear weakness.
The trade deficit has decreased largely driven by a decline in imports, and although the improved balance may support overall growth in the short term, underlying factors suggest softer consumption ahead.
Job creation has slowed significantly while unemployment remains low, reflecting a “slow hiring, no layoffs” environment where companies retain workers but avoid expanding their payrolls.
Increased productivity allows companies to maintain output and margins with fewer hours worked, reinforcing expectations that the Federal Reserve will keep interest rates unchanged in the short term while remaining cautious about easing policy later in the year.
Why it matters: conflicting economic forces
Better trade figures mask potential pressures on transportation and logistics employment, along with risks for small businesses, suggesting that economic momentum is becoming more uneven beneath the surface.
Meanwhile, Bitcoin advances toward a dense supply zone defined by recent buyers at highs, with a cost basis roughly between $92,100 and $117,400.
As the price returns to this area, selling pressure at the equilibrium point is likely to increase, as holders who endured the decline seek to exit without losses, creating significant resistance above the price that suggests a further upward move will require sustained spot demand to absorb the distribution.