Bitcoin Dips Slightly but Holds Strong, Eyeing Breakout Amid Inflation and New US Crypto Policies

March 29, 2025
Bitcoin Dips Slightly but Holds Strong, Eyeing Breakout Amid Inflation and New US Crypto Policies
  • Despite ongoing inflation concerns that have led to delays in interest rate cuts, Bitcoin's resilience is reviving investor confidence amid macroeconomic uncertainty.

  • Currently, Bitcoin is holding steady, down just 0.40%, and is defending its crucial support zone between $84,000 and $85,000, showcasing its strong value as a non-sovereign store of value.

  • Although Bitcoin's price recently dipped below $84,000, analysts remain optimistic about a potential breakout, driven by favorable conditions in U.S. crypto policy and regulatory frameworks.

  • The core Personal Consumption Expenditures (PCE) index has shown a year-over-year increase of 2.8%, slightly above expectations, which dampens hopes for immediate rate cuts by the Federal Reserve.

  • In the legislative arena, bipartisan efforts such as the GENIUS Act are set for Congressional review, aiming to establish frameworks for stablecoins that align with the administration's digital asset strategy.

  • This stability in Bitcoin is attributed to a growing divergence from altcoins, which enhances expectations of stronger investor sentiment as Bitcoin is viewed as a hedge against inflation.

  • Inflation continues to pose challenges in the near term, leading experts to caution that the Federal Reserve may be reluctant to lower rates due to past misjudgments regarding inflation assessments.

  • The recent confirmation of Paul Atkins as SEC Chair is expected to facilitate the approval of Ethereum ETFs and other digital asset products, potentially accelerating market growth.

  • Analysts predict that if Bitcoin surpasses the $90,000 to $100,000 range, it could test its all-time high of $108,500 and potentially reach $150,000 by the end of the year, indicating a shift in crypto's role in policy discussions.

  • A notable development is the executive order by Trump establishing a U.S. Strategic Bitcoin Reserve, which mandates agencies to report seized Bitcoin by early April, with proposed legislation anticipated by May.

Summary based on 1 source


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