Bitcoin on the cusp of new growth: how Fed easing and tariff relaxation can revive the market

Bitcoin on the cusp of new growth: how Fed easing and tariff relaxation can revive the market

Bitcoin is on the cusp of a potential turnaround, with its price potentially soon to surpass the $90,000 mark. This positive outlook comes after US President Donald Trump's recent announcements regarding easing tariffs and the dovish stance of the Federal Reserve, which last week assured markets that it was not worried about short-term inflationary pressures.

According to cryptoanalyst Markus Thielen, founder of 10x Research, bitcoin is struggling to make a bottom. Trump's statement about "flexibility" on reciprocal tariffs set to take effect on April 2 signals a shift in his approach and may support a recovery in cryptocurrencies. "This shift may help stabilize the market and support price growth," Thielen said in a March 23 report.

The Federal Reserve's March 18-19 meeting also confirmed the central bank's willingness to confront short-term inflationary pressures. This new strategy, Thielen noted, creates room for potential monetary easing in the future. "Chairman Powell's slightly dovish tone suggests that the Fed remains on the supportive side, which could bolster the recovery in equity prices and cryptocurrencies," he added.

The technical reversal indicators tracked by 10x Research are now proving bullish. Bitcoin is currently trading around $85,720, up 2.1% over the past 24 hours. The 21-day moving average is now at $85,200, which means that the technical backdrop is once again entering a phase where a new uptrend could emerge.

Thielen also pointed out that several altcoins are already starting to bounce off their downtrends and are trading at more attractive levels.

Although bitcoin is approaching the psychological $90,000 level, Thielen warns that "significant resistance" is expected at this level. Despite the positive outlook, however, there is no clear catalyst at the moment that could immediately kick-start a parabolic rise.

In addition, Thielen warned that Bitcoin should not fall below $73,000, avoiding a deep bear market. This optimism stems from the fact that major Bitcoin holders, such as family offices and wealth managers, are investing in the cryptocurrency for the long term.

Interestingly, the past week has also seen a resurgence in inflows into spot Bitcoin ETFs in the US, suggesting that investors are starting to show interest again. "We expect arbitrage-focused Bitcoin ETF sales to end as arbitrage opportunities have been primarily closed for several weeks now," Thielen added.

With these factors on the horizon, it appears Bitcoin may be on the cusp of new growth, which puts it in a position to surpass all-time highs.

*This is not an investment recommendation.

Coingarage team