The crypto market faced a sharp downturn on Friday as renewed geopolitical tensions and upcoming macroeconomic events rattled investor sentiment. Dogecoin (DOGE) led losses with a 7% drop, followed by XRP and Ethereum (ETH), which each declined over 5% during early Asian trading hours. In contrast, Toncoin (TON) defied the trend, gaining 5% amid the broader selloff.The CoinDesk 20 Index slid by 4.5%, reflecting widespread risk aversion as markets reacted to U.S. President Donald Trump's renewed tariff threats targeting Canada and the European Union. Canadian Prime Minister Mark Carney signaled a strategic pivot away from U.S. trade reliance, adding fuel to global market uncertainty.$12.2B Bitcoin Options Expiry Sparks Market Volatility FearsAdding to the turbulence, over $12.2 billion in Bitcoin options are set to expire today. The max pain point—the price level where the most options expire worthless—is at $85,000, raising expectations for heightened Bitcoin price volatility.“Spot is trading sideways and open interest continues to bleed lower,” said Singapore-based QCP Capital in a Telegram note. “With the PCE Index data due tomorrow, any short-term upside appears limited as markets brace for Trump’s next move in the escalating trade war.”PCE Inflation Data in Focus: Will It Move Bitcoin Price?Investors are now eyeing the upcoming release of the U.S. Personal Consumption Expenditures (PCE) Index, a key inflation gauge for the Federal Reserve. Scheduled for later today, the data could significantly influence Fed rate decisions and investor appetite for risk assets like Bitcoin.A higher-than-expected PCE reading may reinforce inflation concerns, increasing the likelihood of hawkish monetary policy.A weaker PCE figure, on the other hand, could boost expectations of rate cuts, potentially driving fresh capital into crypto markets.Gold Hits Record High as Investors Seek Safe-Haven AssetsAs risk-off sentiment intensifies, gold surged to a record high of $3,109 per ounce in Friday’s Asian session. Meanwhile, global equities slumped — the MSCI World Index recorded its longest losing streak in a month, and Asian stocks suffered their worst single-day loss since February 28.Bitcoin’s Role as a Hedge Faces Macro Headwinds“Bitcoin’s volatility and current macro uncertainty could reduce its appeal as a hedge against economic instability,” said Innokenty Isers, CEO of Paybis. “If the trade war escalates and inflation rises, investors might turn to more traditional inflation hedges like gold.”Despite recent bullish sentiment from corporate entries like GameStop’s Bitcoin investment, today’s sell-off underscores that macro headwinds—from tariffs to inflation—remain dominant forces shaping Bitcoin price direction.Crypto Market OutlookTraders are now awaiting two key catalysts:The release of PCE inflation data, which could set the tone for risk assets heading into Q2.Further trade policy announcements from Trump, which may amplify volatility across both traditional and crypto markets.Stay tuned to Binance News for real-time updates on Bitcoin price movements, crypto market reactions, and macroeconomic trends impacting digital assets, according to CoinDesk.
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