Bitcoin faces a new threat after US PMI reignites stagflation fears

US business activity slowed in March, and the new PMI data delivered a warning that markets are starting to price in: growth is losing momentum just as price pressures pick up again. That creates a pretty tough backdrop for Bitcoin to trade in. When the economy cools while inflation stays elevated, traders expect the Federal Reserve to keep interest rates higher for longer, which is a setup that usually negatively af…