
Title: Bitcoin (BTC) Price Prediction & Analysis: Inflation Cools, But Will Bitcoin Heat Up?
The recent decline in inflation rates has led to a significant shift in market sentiment, causing the Bitcoin price to fluctuate. As of now, it appears that the cryptocurrency is stuck within a defined range, with strong support at $75,000 and resistance near $85,000.
These numbers are not surprising, considering the impact of last week’s initial tariff announcements and their subsequent pause. The situation remains fluid, as markets continue to react to any news surrounding the Federal Reserve’s potential policy shifts.
According to recent data from CoinCentral, it appears that Bitcoin has dropped dramatically in recent days, falling from 57% to just 15%. This sharp decline is influenced by both the tariff pause and the release of March FOMC meeting minutes. Market participants now view June as the more likely timing for monetary policy adjustments, with a 75% probability of at least a 25-basis-point cut by the end of that meeting.
Now, let’s explore how Bitcoin prices have been influenced by inflation and interest rates.
When inflation runs hot, the Federal Reserve typically responds with higher interest rates. This could strengthen the dollar, making Bitcoin less attractive as an investment alternative. However, if inflation cools down like it has in recent days, this may create conditions for more accommodative monetary policy, potentially boosting Bitcoin’s appeal.
In addition to inflationary pressures and monetary policy shifts, we must also consider technical analysis and market structure.
From a technical perspective, it appears that Bitcoin is consolidating within its current range. There are strong support levels around $75,000 and resistance near $85,000.
Source: https://coincentral.com/bitcoin-btc-price-prediction-analysis-inflation-cools-but-will-bitcoin-heat-up/