Bitcoin experienced a significant drop, falling below its $112,500 support level and reaching a new low of $112,201. While altcoins haven’t suffered dramatic sell-offs yet, market sentiment remains bearish for the coming weeks. With the Federal Reserve’s upcoming meeting looming large, economic fears are intensifying and impacting crypto prices. Fitch Ratings’ recent report revealed a weakening consumer spending trend in the first half of 2025, raising concerns about an impending recession. The report highlights decreased household spending due to reduced trade policy clarity, fluctuating stock markets, and declining confidence. This has led to increased inflation driven by rising tariff costs according to Economist Olu Sonola. 2025’s economic outlook is clouded with potential stagflation. Experts anticipate this weakening consumer confidence will amplify the negative impact on cryptocurrency investments. Bitcoin price continues to decline after dropping 10% from its all-time high, signaling a broader market downturn. Fears intensified by the Producer Price Index (PPI) data released last week, which suggested tougher times for cryptocurrencies throughout the rest of the year. The article dives into the market’s current situation, analyzing potential support levels and the impact of upcoming events on Bitcoin’s future performance.