EU Nations Divest US Bonds: Ripple Effects on Cryptocurrency Markets

European Union countries are reportedly selling off US Treasury bonds, causing ripples of concern in the macroeconomic sphere. The Federal Reserve’s expected rate cuts are unlikely following new employment data, and increasing tensions between the EU and Trump have intensified stress in risk markets. Bitcoin‘s (BTC) value has reacted, falling to a low of $87,895.

Is Bitcoin Heading for $80,000?

Bitcoin previously touched $98,000, but the cryptocurrency is now hovering $10,000 below that peak and struggling to maintain the $88,000 threshold. Meanwhile, Ethereum (ETH) has dropped from $3,000 to $2,900. Ongoing disputes suggest Trump is steadfast on issues like Greenland, further straining relations.

The tension heightens as Federal Reserve member Cook prepares for a hearing featuring Powell’s testimony. Recent discussions on the Federal Reserve’s independence have adversely affected the crypto market, and further developments may worsen investor fears.

Analyst Jelle identifies $80,000 as a critical level for BTC, referencing important technical indicators. A failure to rebound from a major resistance and the loss of the 50-week MA/EMA cluster could push Bitcoin to lower levels, making a decline to $80,000 more conceivable.

Washigorira, typically optimistic, expresses concern over Bitcoin retracting below its breakout impulse candle, marking this as a bearish signal. The MACD’s position supports a bearish outlook, raising the likelihood of notable declines.

Can Chiliz (CHZ) Rebound from Its Downturn?

Chiliz once led the SportFi sector in 2021, toppling weaker rivals. However, the halting NFT craze led to significant downturns for similar fan tokens, with CHZ suffering over 90% losses. Although there was a brief recovery in January, it didn’t last long.

Analyst Sherpa has identified a potential buying moment for CHZ, suggesting it as an overlooked strong performer despite its prolonged drop. Sherpa is monitoring purchase opportunities around $0.049 to evaluate future potential.

Key Insights:

• BTC struggles to maintain critical $88,000 threshold.
• Federal Reserve’s independence discussions impact crypto negatively.
• CHZ experiences up to 90% losses but remains a strong contender recently.
• Analysts suggest strategic buying points for potential gains in BTC and CHZ markets.

The economic landscape remains volatile with the EU’s decision to offload US bonds. Cryptocurrency markets are notably affected, as BTC and other digital currencies experience pressure from geopolitical events and central bank policies.