Bitcoin Poised for April Price Rally as Fed Indicates Monetary Easing

Following indications from the Federal Reserve regarding potential monetary easing, Bitcoin
BTC/USD
and other cryptocurrencies are expected to see a price increase in April. This comes on the heels of recent declines in cryptocurrency values, which were influenced by inflation concerns and tariff threats from President Donald Trump.

What Took Place: A recent report showed Bitcoin’s price dipped to around $80,000, after nearing $90,000 earlier in the week. This decline is attributed to inflation anxieties, President Trump’s tariff threats, and apprehensions about an undisclosed hacking incident.

Nonetheless, Arthur Hayes, a well-known crypto trader and BitMex co-founder, foresees a Bitcoin price surge in April.

“A significant shift in tone was evident from Federal Reserve Chair Jerome Powell during the most recent Fed board meeting,” Hayes commented on a podcast.

Hayes, who has recently established the Maelstrom investment firm, argues that the Federal Reserve’s potential return to “stealth” money printing, or quantitative easing, could drive this surge, even amid the escalating $36 trillion U.S. debt that has affected the economy since 2020.

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Hayes’ forecast aligns with the Federal Open Market Committee (FOMC) maintaining interest rates while updating its economic growth predictions. The FOMC also suggested a possible reduction in its “quantitative tightening” efforts, which involve decreasing the bonds it holds on its balance sheet.

“Tariffs no longer concern Powell, nor should they concern crypto investors. Whether Trump sets tariffs at 50% or 2% is irrelevant; what matters is that we understand Powell will continue to foster the easy monetary conditions necessary for our portfolios to appreciate in fiat currency,” Hayes remarked.

Why It’s Important: The prospect of a Bitcoin price increase has considerable implications, especially given the recent fluctuations in the cryptocurrency market.

The Federal Reserve’s hinted adjustment towards monetary easing could deliver a much-needed lift to Bitcoin and other cryptocurrencies, which have been vulnerable to inflation fears and tariff threats.

The predictions from industry experts like Arthur Hayes further bolster the outlook for this potential surge. However, the actual effects of these factors will become clearer in the upcoming weeks.

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