Bitcoin's Recent Price Movements
Bitcoin and crypto prices have dipped as concerns about inflation and threats of tariffs from U.S. President Donald Trump loom large. The price of Bitcoin has fallen back to approximately $80,000 after reaching nearly $90,000 earlier this week, despite the confirmation of significant advancements in the Bitcoin ecosystem.
Predictions from Crypto Experts
Legendary crypto trader Arthur Hayes predicts that the Federal Reserve's actions could trigger a Bitcoin price surge in April. This comes as Bitcoin has been outperforming major stocks like Tesla.
Federal Reserve's Strategy
Hayes notes a shift in tone from Federal Reserve Chair Jerome Powell at the latest meeting, suggesting that inflationary concerns related to tariffs are transitory. The Fed's recent decision to maintain interest rates after initiating a rate-cutting cycle indicates a potential return to quantitative easing, even amidst the $36 trillion U.S. debt crisis.
Impact of Tariffs on Bitcoin
Trump’s impending tariffs on goods from Canada, Mexico, and China, set to start from April 2, may further impact Bitcoin and the broader market. Meanwhile, Markus Thielen, founder of 10x Research, believes a combination of Trump's softened tariff stance and a dovish Fed could set the stage for a Bitcoin rebound toward $90,000.
Conclusion
Overall, the shifting landscape of tariffs and monetary policy from the Fed could play a pivotal role in determining the future trajectory of Bitcoin prices, with increased optimism for a potential recovery in the coming weeks.
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