Bitcoin could rebound to the key psychological level of $90,000 as concerns about monetary inflation in the world's largest economy ease.
Bitcoin's BTCUSD has triggered many alarms in a two-month downtrend, indicating that the current Bitcoin bull market cycle may have ended, contrary to the four-year market cycle theory.
Despite general investor anxiety, according to 10x Research CEO Markus Thielen, Bitcoin may be poised to rebound to $90,000 due to easing concerns about U.S. inflation.
We can see some counter-trend rebounds as prices are oversold and the Fed may take a mild dovish stance,' Thielen said in an interview with Cointelegraph, adding:
'This is not a major bullish development, but rather some fine-tuning from policymakers. We believe $BTC will be in a broader consolidation range, but we may return to $90,000.
Investor confidence may also improve due to comments from Federal Reserve Chairman Jerome Powell, who stated that the Fed will 'wait and see' in the face of rising uncertainty for households and businesses, 10x Research wrote in a post on March 17.
Powell also expressed skepticism about the ongoing inflationary impact of Trump's tariffs, mentioning the situation in 2019, when tariff-related inflation was temporary, and the Fed eventually cut rates three times.
Meanwhile, investors are eagerly anticipating today's Federal Open Market Committee (FOMC) meeting for clues about the Fed's monetary policy for the remainder of 2025, a development that could influence investor demand for risk assets like Bitcoin.
The FOMC meeting is crucial for Bitcoin's trajectory: Analysts
Traders and investors will be watching for any hints regarding the end of the Fed's quantitative tightening (QT) plan, 'a move that could boost liquidity and risk assets,' said Iliya Kalchev, scheduling analyst at Nexo Digital Asset Investment Platform. $BTC
