Bitcoin looking up after Fed’s optimism
Last Updated on 21 March 2025 by CryptoTips.eu
Although Bitcoin is still trading well below its all-time high reached in mid-December of last year, things are improving again after Federal Reserve chairman Jay Powell sounded reasonably optimistic this week. Are we now heading back to $100k or is that a bit too soon?
Federal Reserve
As reported earlier this week, Jay Powell, the head of the US Federal Reserve, could decide on the way forward for the stock markets and Bitcoin. He did so with a fairly positive message that confirmed that the Fed is indeed planning two interest rate cuts (as previously announced) but also (and this was the surprise this time) that he does not think that President Trump’s policy decisions (meaning the multiple tariffs he plans to levy against Europe, China, Mexico and Canada) will automatically lead to higher inflation.
Bitcoin remains trapped in the fairly wide trading band between $95,000 and $75,000 but seems to have found the way up again ever since Powell’s speech.
Geopolitiek
Where last week we feared that large investors were waiting for a possible fall of the largest digital currency below $75,000 and we would test the strong support line of $70,000, that scenario now seems to be off the table.
Note that geopolitical changes also play a role. If Israel were to expand its offensive in Gaza in the coming days or if a possible peace agreement between Russia and Ukraine would suddenly become a long shot again, things could go down again for both the stock markets and Bitcoin.
In the short term, there’s a silver lining.
