As the Federal Reserve maintains an accommodating policy and Donald Trump softens his approach to trade tariffs, Bitcoin seems to have bottomed out. According to analyst Markus Thielen of 10x Research, these factors could propel cryptocurrency to new heights.
The Fed and Trump influence the market
- Flexible pricing: Trump recently signaled a softer approach to the reciprocal taxes due in April, boosting investor confidence.
- Accommodating monetary policy: The Fed has indicated that it may ignore inflationary pressures in the short term, facilitating eventual monetary easing.
A bullish signal for Bitcoin
- Positive technical indicators: Analyses show that Bitcoin could begin a similar uptrend to those seen in previous bull markets.
- $90,000 goal: Bitcoin is currently around $85,720 and could test the $90,000 level in the coming weeks.
Opportunities and challenges
Opportunities:
- An influx of capital into the crypto market thanks to a more favorable economic climate.
- A renewed interest in Bitcoin in the run-up to the US elections.
Challenges:
- A strong resistance around the $90,000 mark could slow progress.
- The absence of a clear catalyst for a short-term parabolic rally.
Conclusion
Adjustments by the Fed and Trump offer a favorable backdrop for a Bitcoin rebound. However, key resistance levels will have to be crossed to confirm a lasting upturn in the bull market.
