Bitcoin Anticipated to Surge in April Amid Federal Reserve Easing Signals
In response to potential monetary easing signals from the Federal Reserve, Bitcoin prices are predicted to surge in April. Arthur Hayes, a notable crypto trader, suggests that easing monetary conditions could lead to recovery, despite recent declines due to inflation fears and tariff threats. The future price trajectory of Bitcoin will depend on the unfolding economic policies.
In light of indications from the Federal Reserve regarding potential monetary easing, Bitcoin (BTC/USD) and other cryptocurrencies are anticipated to see a significant price increase in April. This forecast surfaces despite recent declines in cryptocurrency values, which have been driven by inflation anxieties and tariff threats from President Donald Trump.
Recent analyses indicated that Bitcoin’s price fell to around $80,000, down from nearly $90,000 earlier in the week. This decline has been attributed to inflation concerns, President Trump’s tariff proposals, as well as fears surrounding an unspecified hacking incident. Nevertheless, Arthur Hayes, a noted crypto trader and co-founder of BitMex, foresees an upswing in Bitcoin prices in April.
Arthur Hayes expressed, “There was a seminal change in the Federal Reserve Chair Jerome Powell’s tone at the last Fed board meeting.” He posits that the Federal Reserve’s likelihood of returning to “stealth” money printing or quantitative easing could instigate this price surge, despite the alarming $36 trillion U.S. debt accumulated since 2020.
Hayes’ projection comes after the Federal Open Market Committee (FOMC) decided to maintain interest rates and re-evaluate its economic growth forecast. The FOMC also suggested the possibility of scaling back its quantitative tightening measures, which involve selling bonds from its balance sheet.
The implications of these movements are profound, as suggested by Hayes when he noted, “Tariffs don’t matter anymore to Powell, and they shouldn’t matter as crypto investors. If Trump does 50% or he does 2%, it doesn’t matter, because we know that Powell is going to continue to provide the easy monetary conditions that we need to have our portfolios go up in fiat dollars.”
Given the recent volatility in the cryptocurrency market, the prospect of a Bitcoin price surge is particularly noteworthy. The Federal Reserve’s indications toward monetary easing may offer a crucial advantage to Bitcoin and other cryptocurrencies significantly affected by inflation fears and tariff discussions. Industry insights from experts like Arthur Hayes reinforce the idea of potential price growth, though the actual impact remains to be observed in the forthcoming weeks.
In conclusion, the expectations of a price surge for Bitcoin in April may be rooted in the Federal Reserve’s hints of monetary easing amidst prevailing inflation concerns and tariff threats. Despite recent volatility within the cryptocurrency market, predictions from industry experts, including Arthur Hayes, lend credibility to this optimism. The unfolding developments in monetary policy will be pivotal in determining the actual trajectory of Bitcoin prices in the near future.
Original Source: www.benzinga.com
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