Bitcoin Poised for Recovery Amid Fed Easing and Trump’s Tariff Shift
Bitcoin may have found its bottom as global political and economic shifts create a more favorable environment for risk assets. Former U.S. President Donald Trump’s softened stance on tariffs and the Federal Reserve’s resistance to inflation fears are key factors analysts believe could push Bitcoin back toward the $90,000 mark.
According to Markus Thielen, founder of 10x Research, Trump’s recent flexibility on reciprocal tariffs set for April 2 has eased economic uncertainty. “Bitcoin is attempting to form a bottom, supported by Trump’s recent shift toward ‘flexibility’ on tariffs, softening his earlier rhetoric,” Thielen noted in a report on March 23.
Additionally, the Federal Reserve’s stance during its March 18-19 meeting indicated that it is willing to look past short-term inflationary pressures. Federal Reserve Chair Jerome Powell’s dovish tone suggested that monetary policy could remain accommodative, boosting investor confidence in both traditional and digital assets.
Bitcoin’s 21-day moving average now stands at $85,200, and historical data suggests that similar market conditions in the past have led to significant rallies. Previous uptrends, such as in September 2023 amid the Bitcoin exchange-traded fund (ETF) narrative and August 2024 as U.S. elections approached, show a pattern of Bitcoin rebounding from these levels.
However, resistance at the $90,000 mark remains a key challenge. While optimism is growing, Thielen cautioned that “no clear catalyst exists for an immediate parabolic rally.”
Political and economic uncertainty continue to play a crucial role in Bitcoin’s trajectory. Trump’s shifting trade policies, combined with the Federal Reserve’s monetary stance, could create a bullish backdrop for Bitcoin as investors look for alternatives amid geopolitical and macroeconomic fluctuations.
Furthermore, U.S.-based spot Bitcoin ETFs recorded inflows for the first time since January, suggesting that institutional investors remain interested in Bitcoin despite recent market volatility.
With global politics and economic policy in flux, Bitcoin’s next move will be closely tied to decisions made by world leaders and central banks. Whether Trump’s tariff strategy or the Fed’s policy decisions lead to sustained gains remains to be seen, but for now, Bitcoin appears to be setting the stage for a potential resurgence.
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