Bitcoin may have reached its bottom and could climb toward $90,000. A crypto analyst points to shifting market conditions as a sign of potential recovery.
The willingness of the U.S. president to ease tariffs and the Federal Reserve’s measured response to inflation have contributed to new optimism. Bitcoin’s drop below $95,000 sealed a bearish breakdown. Further losses were expected by most analysts, but recent technical indicators point to a possible recovery.
Market sentiment shifted because new political and economic considerations were emerging. Among these considerations influencing Bitcoin’s outlook is the softening of the U.S. president’s stance on tariffs. Initially, he had adopted a tough stance on the April 2 reciprocal tariffs.
Market shifts boost Bitcoin and Altcoins
But he recently showed greater flexibility, easing some investors’ fears. This policy shift reduces uncertainty in global markets, which has a tendency to affect risky assets like Bitcoin. The other big event was the Federal Reserve’s response to inflation data.
The latest Consumer Price Index (CPI) report showed inflation easing a bit, which soothed market worries. The Federal Reserve followed by not giving in to pressure to tighten monetary policy aggressively. Instead, it showed a willingness to look beyond near-term inflation pressures in favor of a more stable economy.
Bitcoins have responded well to these advancements. Hyperliquid’s HYPE token is up 21% since March 17. The action highlights selective opportunities within the marketplace despite declining total trading volumes.
The same situation occurred in September 2024 when traders were wary, but some analysts correctly called a breakout. Institutional investors continue to rely on systematic trading techniques.
Bitcoin’s next move as investors watch
Hedge funds like Millennium allocate portions of their portfolios to data-driven models. These strategies consistently have a knack for capturing early trend reversals, even in less volatile markets. Investors, therefore, remain focused on identifying new catalysts for Bitcoin and the broader crypto market.
Several factors could determine Bitcoin’s future direction. Investors are watching policymaking and macroeconomic events closely. If the president continues to be accommodative on tariffs and the Federal Reserve continues to be hesitant to tighten aggressively, Bitcoin could rise.
The market is also waiting for new catalysts that could drive trading activity in the coming months. While uncertainty remains, analysts see growing signs of a potential recovery. Bitcoin appears to be stabilizing, and institutional investors continue to track key indicators.
The next few weeks will be crucial in determining whether Bitcoin can sustain a move higher. The market is preparing for its next major development, with traders watching closely for signs of momentum.
