Bitcoin could recover beyond its key psychological mark of $90,000 as it eases financial inflation concerns in the world’s largest economy.
Bitcoin (BTC) has pushed against the theory of a four-year market cycle, bringing up numerous alarms that could end the current Bitcoin Bull cycle, beyond its two-month downtrend.
According to Markus Thielen, CEO of 10X Research, Bitcoin is easing US inflation concerns despite widespread investor concerns, and could be on track to recover above $90,000.
“Because prices are oversold, we can see counter-trend rallying and the Fed can be a bit disrupted,” Thielen told Cointelegraph, adding:
“This is not a major bullish development, it’s a tweak from policymakers. I think BTC is in a broader integration range, but we can go back to $90,000.”
Bitcoin Daily RSI indicator. Source: 10x Research
Investor confidence could also be improved by comments from Federal Reserve Chairman Jerome Powell.
“Powell also expressed doubt about the effects of the sustained inflation of Trump’s tariffs, referring to a 2019 scenario in which tariff-related inflation was temporary and ultimately three fees were reduced.”
Meanwhile, investors are eagerly awaiting today’s Federal Open Market Committee (FOMC) meeting for clues on the Fed’s monetary policy for the remainder of 2025.
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FOMC Conferences: Bitcoin Trajectory: Is Important for Analysts
According to Iliya Kalchev, a temporary analyst at NEXO Digital Asset Investment Platform, traders and investors will monitor tips on the end of the Fed’s quantitative easing (QT) program, “movements that could increase liquidity and risky assets.”
“The Fed’s decisions going forward could be a major catalyst for further movement,” an analyst told Cointelegraph, adding:
“If Chairman Powell spread his incredible wings, Bitcoin could fly into a new bullish momentum.”
“However, concerns about sustained inflation and reaffirming severe financial positions such as rising interest rates and continuing tightening of liquidity could limit the likelihood of a rise,” the analyst added.
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Provides the probability of the target interest rate. Source: CME Group’s FedWatch Tool
According to the latest estimates from CME Group’s FedWatch tool, the market is currently priced at a 99% chance that the Fed will stabilize interest rates.
Still, the latest Bank of America survey found that investors reduced their exposure to US stocks most record-breaking on record at 40% points between February and March. It raises concerns that fears of a recession could hurt Bitcoin’s price behavior.
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