With the Federal Reserve maintaining an accommodative policy and Donald Trump easing his approach to trade tariffs, Bitcoin appears to have bottomed out. According to analyst Markus Thielen of 10x Research, these factors could propel the cryptocurrency to new highs.
The Fed and Trump Influence the Market
- Flexibility on Tariffs: Trump recently signaled a more relaxed approach to the reciprocal tariffs scheduled for April, which has boosted investor confidence.
- Accommodative Monetary Policy: The Fed has indicated it may ignore short-term inflationary pressures, facilitating potential monetary easing.
A Bullish Signal for Bitcoin
- Positive Technical Indicators: Analysis shows that Bitcoin could begin an upward trend similar to those seen in previous bull markets.
- Target at $90,000: Bitcoin is currently around $85,720 and could test the $90,000 threshold in the coming weeks.
Opportunities and challenges
Opportunities:
- An influx of capital into the crypto market thanks to a more favorable economic climate.
- Renewed interest in Bitcoin as the US elections approach.
Challenges:
- Significant resistance around $90,000 could slow progress.
- The lack of a clear catalyst for a parabolic rally in the short term.
Conclusion
The Fed and Trump adjustments provide a favorable backdrop for a Bitcoin rally. However, key resistance levels will need to be broken to confirm a sustained bull market recovery.
