Investment Advice and Outlook

Given the current data, it is unlikely that Bitcoin will continue to drop significantly in the short term. Investors should pay attention to the upcoming CPI data; if the inflation data exceeds expectations, it may drive prices up; if it falls below expectations, it may trigger further volatility. In the long term, the trend of Bitcoin will be influenced by macroeconomic policies, regulatory environments, and the level of institutional adoption, and it is advisable to remain flexible and monitor market dynamics.

For example, if the Federal Reserve lowers interest rates or implements quantitative easing due to economic slowdown caused by tariff policies, it may be favorable for Bitcoin prices. A DL News article mentioned that analysts expect the Federal Reserve to lower rates by 75 to 100 basis points for the remainder of this year, which is usually beneficial for Bitcoin and tech stocks (How experts see Trump’s shock tariffs affecting Bitcoin and crypto prices). Additionally, a Newsweek article cited investor Anthony Pompliano's view that Bitcoin could reach a new all-time high by the end of the year (Donald Trump is Losing the Crypto Bros Over Tariff Turmoil).

However, if negotiations fail and high tariffs are re-implemented, it may trigger market turmoil, and investors need to be prepared for potential risks. Overall, in the short term, Bitcoin may continue to fluctuate, but in the long term, if economic uncertainty increases, Bitcoin's appeal as an alternative asset may strengthen.