Investors in Bitcoin are keenly anticipating the upcoming U.S. Personal Consumption Expenditures (PCE) inflation report scheduled for release on March 28. This report could significantly influence market sentiment. Compiled by the U.S. Bureau of Economic Analysis, it monitors inflation based on consumer expenditure and is projected to offer insights into the overall economic climate. Analysts suggest that a decline in inflation worries may propel Bitcoin higher, with some forecasting a climb to $110,000 before a possible drop to $76,500.
April has historically been favorable for Bitcoin, with an average monthly return of 12.9%, according to data from CoinGlass. Additionally, the Federal Reserve’s recent easing of its monetary policy could enhance liquidity, potentially contributing to a price surge. Juan Pellicer, a senior research analyst at IntoTheBlock, observed that Bitcoin’s resurgence is fueled by increased institutional interest and substantial investments. “BTC is demonstrating signs of recovery, spurred by rising institutional investment and large purchases from key players,” he remarked.
Ongoing global trade tensions pose significant concerns for investors. Since U.S. President Donald Trump announced import tariffs on Chinese products on January 20, Bitcoin’s price has fallen by over 14%. Nonetheless, markets have shown slight recovery following Trump’s suggestion that some trading partners might receive tariff exemptions or reductions. Yet, uncertainty persists. Nicolai Sondergaard, a research analyst at Nansen, indicated that market pressure is likely to remain until at least April 2, contingent on whether nations can agree on trade policies. “I am eager to see what unfolds regarding the tariffs after April 2nd. Some may be lifted, but that hinges on a consensus among all countries,” he commented.
QCP Group, a digital asset firm based in Singapore, underscored the importance of the PCE report in relation to Bitcoin’s fluctuations. “As we approach the quarterly expiry on Friday, with the highest open interest in call options above $100K, we do not anticipate significant volatility driven solely by options positioning. However, all eyes will be on the PCE inflation figures, which may serve as the next major catalyst,” the firm noted on Telegram.
Risk assets have seen some recovery following Trump’s indication that tariff exemptions might be on the table, helping to alleviate market anxieties. While some analysts remain wary of ongoing volatility, many are optimistic that Bitcoin may reach new highs before encountering any considerable downturn. The broader economic backdrop remains unpredictable, as inflation concerns, trade policies, and changing monetary strategies sway investor sentiment. With the PCE inflation report looming, Bitcoin traders will be keen to detect any signals of easing macroeconomic risks that could influence further price fluctuations.
