Bitcoin (BTC) is likely to fall below $80,000 this week

According to digital assets research firm 10x Research. In a recent market update on X, the firm cited growing uncertainty over U.S. tariffs and rising inflation as key risk factors

Digital assets research firm 10x Research sees Bitcoin (BTC) falling below $80,000 this week amid several pressing macroeconomic risks, beginning with U.S. tariffs and hot inflation.

In a recent market update on X, the firm cited several key risk factors that could push Bitcoin and broader financial markets lower.

Hotter-Than-Expected Inflation Data Weighs on SentimentThe report mentioned that hotter-than-expected U.S. core Personal Consumption Expenditures data continues to suggest that inflation remains a pressing concern.

This is especially pertinent as the Federal Reserve closely monitors core PCE to gauge the underlying price trends in the economy.

Moreover, shifting rhetoric from former U.S. President Donald Trump on tariffs has introduced an element of uncertainty.

Trump's pronouncements on imposing or lifting tariffs on goods traded between the U.S. and China have sparked fears that aggressive trade policies could strain economic sentiment and ultimately push markets lower.

"The Bitcoin rebound over the past 3 weeks has faltered, as hotter-than-expected core PCE data signaled rising inflation—driven in part by Trump’s tariff implementation— which appears to be weighing on consumer sentiment and spending habits," the report stated.

Weak PMI Data Could Amplify Risk AversionIf the upcoming U.S. ISM Manufacturing PMI data comes in weaker than expected, risk aversion could intensify.

This would likely spill over into the cryptocurrency market, putting further downward pressure on Bitcoin.

The report also noted that strong employment data may buy the Federal Reserve more time before intervening.

"The strong jobs market may delay any Fed action to reduce interest rates or introduce quantitative easing (QE) measures, which could be relevant for markets hoping for a rebound."

However, despite these risks, 10x Research noted that market volatility remains subdued, with the VIX at low levels.

This suggests that traders may be underestimating the potential for further downside, especially as macroeconomic pressures threaten to push markets lower.

"The market volatility remains low, with the VIX at low levels. But given the multiple risk-off catalysts emerging, including hot inflation data and Trump’s comments on tariffs, traders may be underestimating the potential for further downside."

With several risk-off catalysts in play, Bitcoin’s recent rebound appears fragile. If macroeconomic pressures persist, BTC could face further declines in the coming days.