Volatility may be cooling off in the crypto markets—but occasional dips are likely before Bitcoin breaks $90,000 again, according to a BRN analyst.
The world’s biggest cryptocurrency has been relatively flat over the past 24 hours, and hovering around $85,000 at the time of writing.
BTC has proven sensitive to the uncertainty surrounding Trump’s tariffs, with the World Trade Organization warning they could act as a “brake on global growth.”
Federal Reserve Chair Jerome Powell has also been accused of being too slow to react, with the U.S. central bank still reluctant to cut interest rates.
That prompted Trump to up the ante by declaring that “Powell’s termination cannot come fast enough”—and the cost of borrowing should have been slashed long ago.
While the Fed operates independently of government, the U.S. president recently signed an executive order designed to give his administration greater influence.
The European Central Bank cut its main interest rate for the third time this year on Thursday, but the Fed’s last reduction was back in December.
BRN analyst Valentin Fourner noted that the market expects four U.S. rate cuts in 2025, but the probability of just three has now risen to 48%.
In a note seen by Decrypt, he wrote: “Bitcoin dominance continues to rise, suggesting altcoins could continue underperforming in the short term.”
Fourner is currently overweight BTC for macro resilience, neutral Solana for “rebound potential,” and neutral Ether because there could be an upside from the deeply discounted levels where it’s currently trading.
While Bitcoin has fallen by 9.3% since the start of the year, Ethereum has seen its price crash by 52%.
A wider challenge for the crypto markets has concerned the lack of positive catalysts that could ramp up buying pressure and squeeze supply.
But in what could prove to be a significant development, Binance says it is now advising several countries on how to establish strategic Bitcoin reserves.
CEO Richard Teng told the Financial Times that Trump’s decision to create a stockpile of digital assets has spurred other nations to explore similar policies.
Edited by Stacy Elliott.
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Source: https://decrypt.co/315269/bitcoin-price-flat-amid-signs-volatility-may-be-cooling-off-analysts