Bitcoin has maintained relative stability around the $85,000 mark over the past 24 hours, according to market data. A BRN analyst suggests that while overall volatility in cryptocurrency markets appears to be cooling, investors should anticipate occasional price dips before Bitcoin breaks the $90,000 threshold again.
The cryptocurrency market has proven sensitive to economic uncertainties stemming from proposed Trump tariffs, with the World Trade Organization warning these measures could function as a “brake on global growth.” This economic concern coincides with criticism of Federal Reserve Chair Jerome Powell for apparent hesitation in reducing interest rates.
Federal Reserve Policy and Cryptocurrency Markets
Former President Trump has intensified his criticism of the Federal Reserve’s approach, stating that “Powell’s termination cannot come fast enough” and arguing that interest rates should have been reduced much earlier. While the Fed operates independently, Trump recently signed an executive order designed to increase his administration’s influence over monetary policy.
In contrast to the U.S. approach, the European Central Bank implemented its third interest rate cut of the year on Thursday, while the Federal Reserve’s last reduction occurred in December. Valentin Fourner, a BRN analyst, noted that market expectations now show increased probability (48%) of just three U.S. rate cuts in 2025 rather than four.
“Bitcoin dominance continues to rise, suggesting altcoins could continue underperforming in the short term,” Fourner wrote in an analysis seen by Decrypt. He currently recommends an overweight position on Bitcoin for macro resilience, while remaining neutral on Solana and Ethereum.
Performance Disparities and Future Catalysts
The performance gap between major cryptocurrencies has widened significantly this year. While Bitcoin has declined by 9.3% since January, Ethereum has experienced a much steeper 52% price drop. Analysts point to a lack of positive market catalysts that could stimulate buying pressure and constrict supply.
A potentially significant development has emerged as Binance CEO Richard Teng told the Financial Times that the exchange is now advising several countries on establishing strategic Bitcoin reserves. According to Teng, Trump’s decision to create a U.S. stockpile of digital assets has prompted other nations to explore similar strategic holdings.
The cryptocurrency market continues to navigate through economic policy uncertainties while watching for new institutional adoption signals that could potentially drive the next phase of price movement.
Source: Bitnewsbot.com / Digpu NewsTex
