Bitcoin and cryptocurrency prices are declining due to inflation fears and tariff threats from President Trump. Legendary trader Arthur Hayes predicts a Bitcoin price increase linked to the Federal Reserve’s upcoming decisions, while analyst Markus Thielen expects a recovery influenced by Trump’s evolving tariff strategy. Powell’s recent communication also hints at a supportive monetary approach.

The recent decline in Bitcoin and cryptocurrency prices can be attributed to mounting inflation concerns and tariff threats from U.S. President Donald Trump. Bitcoin has regressed to nearly $80,000 after reaching close to $90,000 despite significant developments in the cryptocurrency space.

Notably, legendary trader Arthur Hayes predicts an impending Bitcoin price surge due to the Federal Reserve’s actions in April. Hayes contends that changes in Federal Reserve Chair Jerome Powell’s communication during the last board meeting indicate a shift.

He believes that Powell is hinting at a potential return to quantitative easing, even as U.S. debt continues to escalate dramatically. Hayes emphasized that Powell’s recent stance, stating that “inflationary aspects of tariffs are transitory,” suggests tariffs will not derail monetary easing policies crucial to the cryptocurrency market.

As tariffs from Trump are set to impact goods from Canada, Mexico, and China starting April 2, analysts like Markus Thielen see potential for Bitcoin’s recovery. Thielen points out that Trump’s recent flexibility regarding tariffs may aid in Bitcoin’s performance, with Powell’s approach further supporting this as he suggests looking beyond immediate inflation concerns.

In summary, the cryptocurrency market faces challenges from inflation and tariffs but may see a rebound based on Federal Reserve actions and Trump’s changing stance. Key figures in the cryptocurrency community predict that these elements could catalyze a Bitcoin price resurgence in April. Investors are encouraged to monitor these developments closely, as they could influence market dynamics significantly.

Original Source: www.forbes.com

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