BTC Price Outlook: Can Bitcoin Break Above $85,000 Amid Fed’s Restrictive Monetary Policy?

The President of the New York Federal Reserve recently reiterated that the current monetary stance remains moderately restrictive, with elevated interest rates exerting downward pressure on inflation metrics. However, the prospect of a resurgence in inflation remains a concern, prompting the Fed to maintain a vigilant approach toward upcoming economic indicators before any potential interest rate adjustments. Meanwhile, Goldman Sachs has notably increased its forecast of a U.S. economic recession likelihood from 20% to 35%, which compounds existing market uncertainties regarding the timeline for potential cuts in Federal rates. This sentiment has created notable short-term pressures on risk assets, including Bitcoin. Analysts suggest that if Bitcoin can maintain a position above $82,500, it may push towards $85,000. A sustained level over $75,000 could indicate a constructive groundwork for a rebound in the upcoming months, making it imperative for investors to remain cognizant of liquidity shifts and manage their exposure effectively.