Bitcoin struggles to break above $90K as altcoins take the lead, signaling a market shift.

The cryptocurrency market is currently stuck in a range, with Bitcoin still attempting to rise above the crucial $90k mark.

Cryptocurrency market trends are shifting as Bitcoin struggles at the $90K handle and altcoins take the lead, signaling a potential market shift. However, economic fears are rising with consumer confidence dropping to its lowest point since 2021, while bearish bets are growing and inflation worries persist.

Consumer confidence has slipped to its weakest level since early 2021, with the Conference Board consumer confidence index dropping to 92.9 in March, compared to expectations of 100 and February’s revised reading of 104.8. This decline is attributing to Americans feeling more downbeat about the economy, which could lead to slower spending and impact the market, especially in the consumer sector.

Consumer discretionary stocks in the S&P 500 have fallen by 9% this year, lagging behind the overall market, which is down 2%. These stocks are also showing signs of a bearish outlook, with $800 million in outflows from consumer discretionary ETFs in March alone.

Options data also reveals a higher number of puts compared to calls, and short interest is increasing. This bearish sentiment can be attributed to poor performance by stocks like Tesla and broader economic factors.

Furthermore, worries over inflation and weak economic data, such as GDP forecasts from the Atlanta Fed, are affecting market sentiment. While some sectors, like healthcare and insurance, are performing better, overall economic challenges and tariff impacts are making investors more cautious. However, banks are benefiting from widening interest margins and have seen positive inflows.