Bitcoin prices fell 2.3% to around $81,500 as news of declining inflation created anxiety regarding the US trade war. The Producer Price Index (PPI) for February showed an increase of 3.2% compared to the previous year, which was below market expectations. Despite initial expectations that positive inflation data would lead to market gains, both stocks and cryptocurrencies remained stagnant. Observers noted that fears about the trade war may overshadow favorable inflation reports, dampening trader enthusiasm. As the next Federal Reserve interest rate decision approaches, expectations for financial easing remain low, with the possibility of a rate cut in May at just 28%. Bitcoin is currently facing strong resistance at the 200-day simple moving average, which has deterred price gains for several days. Analysts suggest traders brace for further volatility in the markets due to these circumstances.

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