As market apprehensions regarding the Trump administration’s tariff policies escalate, several Federal Reserve officials have reiterated the significance of managing inflation effectively. It’s crucial to prevent the price hikes induced by tariffs from evolving into persistent inflationary pressures. Moreover, there has been a marked increase in public awareness concerning future pricing trends. Should inflation expectations become entrenched, reinstating price stability could prove to be more challenging. Despite the fact that the latest Consumer Price Index (CPI) data from March indicates a minor easing of inflation, Federal Reserve officials advocate for maintaining current interest rates until the full ramifications of the tariff policies are assessed. Fed Chair Powell emphasized that any decision regarding a potential rate cut will hinge on forthcoming economic data.
In this context of heightened inflation and tariff-related uncertainties, the short-term volatility of crypto assets is likely to increase. Market participants should remain vigilant about upcoming macroeconomic data and the Fed’s policy trajectory. Renewed expectations for rate cuts could serve as a catalyst for sustained momentum in risky assets, such as Bitcoin. It is critical for BTC to maintain its position above the $78,500 support level. A decline below this threshold could result in testing the $75,000 mark. Conversely, breaking through the $82,500 resistance could pave the way towards $85,000. Investors are encouraged to monitor macroeconomic policy changes closely, adjust their positions as necessary, and implement robust risk management strategies.