Bitcoin Price Forecast: BTC could hit $110,000, supported by the Fed’s dovish stance and Trump’s flexibility on tariffs

Bitcoin Price Forecast: BTC could hit $110,000, supported by the Fed’s dovish stance and Trump’s flexibility on tariffs

  • 24.03.2025 21:02
  • fxstreet.com
  • Keywords: High Risk

Bitcoin price hovers above $87,000 after a 4.25% recovery last week. BitMEX co-founder Arthur Hayes predicts BTC could reach $110,000, supported by the Fed’s dovish stance on inflation and President Trump’s flexibility on tariffs. Bitcoin spot ETFs also contributed to its recovery with $744.30 million inflows last week.

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Context

Bitcoin Price Forecast Analysis

Bitcoin Price Overview

  • Bitcoin price hovers above $87,000 on Monday after recovering 4.25% last week.
  • BitMEX co-founder Arthur Hayes predicts BTC could hit $110,000 before retracing to $76,500, citing the US Federal Reserve’s dovish stance on inflation and President Trump’s flexibility on tariffs.

Market Drivers

  • US Fed's Dovish Stance: The Federal Reserve's accommodative approach to inflation has bolstered Bitcoin's price momentum.
  • President Trump's Tariff Policy: Trump's flexibility on tariffs is seen as a positive factor for market sentiment, indirectly supporting Bitcoin prices.
  • Bitcoin Spot ETF Inflows: Bitcoin spot ETFs recorded net inflows of $744.30 million last week, indicating increased institutional interest.

Institutional Demand

  • CryptoQuant data shows stablecoins (ERC-20) on Binance reached a new all-time high of over $31 billion, signaling heightened investor activity.
  • The reduction in sell-side pressure suggests a potential shift towards bullish sentiment among institutions.

Price Forecast and Technical Analysis

  • Bitcoin price broke above its 200-day Exponential Moving Average (EMA) but failed to sustain gains, consolidating around the level.
  • The Relative Strength Index (RSI) on the daily chart reads 51, indicating increasing bullish momentum.
  • BTC bulls aim for the $90,000 mark as a near-term target.

Market Implications

  • Bull Run Potential: High Bitcoin dominance during bull runs suggests investors are seeking stability amid market volatility.
  • Competitive Dynamics: The rise in institutional demand and ETF inflows underscores Bitcoin's position as the leading cryptocurrency in the market.
  • Long-Term Effects: If Bitcoin continues its upward trajectory, it could redefine market dynamics for altcoins and stablecoins.

Definitions (Contextual Clarification)

What is Bitcoin?

  • Largest cryptocurrency by market capitalization, designed for peer-to-peer transactions without third-party involvement.

What are Altcoins?

  • Any cryptocurrency other than Bitcoin, with Ethereum often considered separately due to its unique characteristics.

What are Stablecoins?

  • Cryptocurrencies pegged to assets like the US Dollar, offering stability and serving as bridges between traditional and crypto markets.

What is Bitcoin Dominance?

  • Measures Bitcoin's market capitalization relative to all cryptocurrencies, typically rising during bull markets as investors prefer stability.