Bitcoin might recover to $90,000 amid declining inflation concerns following FOMC meeting

Bitcoin is likely to recover above $90,000. The world’s biggest economy has been experiencing a decline in inflationary concerns.

Bitcoin’s (BTCThe two-month downward trend has raised alarms about the current situation. Bitcoin bull cycle The four-year cycle theory may not be valid.

Markus Thielen of 10x Research, CEO, said that Bitcoin, despite investor fears, may still be on the right track for a price recovery over $90,000. This is due to easing inflation worries in the United States.

“We can see some counter-trend rally as prices are oversold, and there is a good chance that the Fed is mildly dovish,” Thielen tells Cointelegraph that he also:

“This is not a major bullish development, rather some fine-tuning from the policymakers. We think BTC will be in a broader consolidation range but we could trade back towards $90,000.”

Jerome Powell’s statements that the Fed would be willing to increase interest rates could also improve investor confidence. “remain on hold amid rising uncertainty among households and businesses,” In a 17 March X, I wrote about 10x research. post, adding:

“Powell also expressed doubts about the sustained inflationary impact of Trump’s tariffs, referencing the 2019 scenario where tariff-related inflation was temporary, and the Fed eventually cut rates three times.”

The Federal Open Market Committee’s (FOMC’s) today meeting will give investors a clue as to the Fed’s monetary policy going forward. risk assets such as Bitcoin.

Related: Crypto market’s biggest risks in 2025: US recession, circular crypto economy

Bitcoin will have a major impact on the FOMC Meeting: Analyst

Investors and traders will watch for any hint that the Fed’s Quantitative Easing (QT program) is ending. “a move that could boost liquidity and risk assets,” Iliya Kachev, a dispatch analyst with Nexo Digital Asset Investment Platform.

“The upcoming Fed decision could be a major catalyst for further movements,” The analyst said to Cointelegraph:

“If Chair Powell spreads his dovish wings, Bitcoin could take flight on renewed bullish momentum.”

“However, persistent inflation concerns or a reaffirmation of tight financial conditions, such as elevated interest rates or continued liquidity tightening, could limit upside potential,” The analyst is added.

Related: Rising $219B stablecoin supply signals mid-bull cycle, not market top

The CME Group’s FedWatch estimates that markets currently price in a 98% chance of the Fed keeping interest rates stable. tool.

Still, investors have slashed their exposure to  US equities by the most on record by 40-percentage-points between February and March, according to Bank of America’s latest survey — raising concerns that recession fears may Bitcoins’ price movement is hurtful.

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