Bitcoin Rebounds as Fed Eases and Trump Signals Softer Tariff Stance

Bitcoin is getting more attention again as signs of a big recovery appear. The world’s biggest cryptocurrency is getting stronger now that US President Donald Trump is softening his stance on taxes and the Federal Reserve is staying “dovish” on inflation. Analysts in the crypto world think Bitcoin has hit bottom, which could lead to a rise to $90,000. Could this be the time that Bitcoin starts going up again? The market conditions are good, and bullish technical signs are flashing green. So, let’s look at the main things that are causing this expected breakout.

Bitcoin May Return to $90,000 Amid Market Shifts

After recent changes in the economy and politics, which have resulted in a change in public opinion, Bitcoin may be ready for a strong comeback. The crypto market seems to stabilize now that US President Donald Trump has said he is open to lowering taxes and the Federal Reserve is staying “dovish” on inflation fears. 

Trump’s Tariff Flexibility and Fed’s Dovishness Boost Bitcoin

Trump’s recent comments that he might be less strict about the April 2 mutual tariffs have given the market new hope. His willingness to negotiate differs from his earlier tough talk, making the economy less uncertain. 

Bitcoin Technicals Signal Uptrend Revival

The moving average for the last 21 days of Bitcoin is now $85,200, and the reversal signs from 10x Research have turned bullish. Similar situations in the past have led to strong returns; like when Bitcoin’s bull market started up again in September 2023 and August 2024. 

Renewed Bitcoin ETF Inflows Boost Market Confidence

The return of money in the US-based spot Bitcoin ETFs is another sign of hope. This is the first time this has happened since January. Thielen says that investors who were interested in arbitrage and had been selling are now winding down and closing out their accounts. 

Conclusion

The fact that Bitcoin is trading at $85,720 right now says that the market is getting stronger, but the $90,000 level will be hard to break through. Even though a breakout is possible, Thielen says that there isn’t a clear reason for a parabolic rally to happen right away.