Matrixport: US Macro Data Weakness May Trigger Market Turbulence, Bitcoin Rally Hard to Sustain

BlockBeats News, June 6th, Matrixport released a weekly report stating that Bitcoin's upward momentum is weakening, and cracks are beginning to show in the U.S. macroeconomic backdrop. Two key economic indicators have recently dropped to multi-month lows, but most investors' attention is still focused on ETE fund flows. In fact, funding dynamics, stablecoin activity, and forward-looking data all suggest that the market may be undergoing a larger-scale shift.

As U.S. macroeconomic data starts to soften, we may be entering a period of uncertainty. The recent strong performance in demand is likely a result of the market's accelerated execution of orders in anticipation of Trump's tariff policy, but this activity appears to be normalizing. Policymakers may be concerned that the tariff policy will reignite inflationary pressures, hence maintaining caution in prematurely easing policies.

We have previously pointed out that Bitcoin breaking above $84,500 would confirm its bullish trend. Considering the market's potential uncertainty in the summer, we advised traders to take profits moderately in last week's report. Despite the recent softening of prices, our trend model still maintains a bullish stance. The model will only turn bearish if Bitcoin falls below $96,719, a level that is still intact but is indeed close to being touched. With the momentum of the trend clearly weakening, we have chosen to lock in profits early. As signs of early economic data weakness gradually emerge, we may be heading into a two-month period of economic turbulence. In such a market environment, Bitcoin is unlikely to sustain its upward trend uninterrupted, especially when the Fed is not yet prepared to cut rates and inflation expectations remain high.