Bitcoin Bottom Forming as Fed Eases and Trump Softens Tariffs: Analyst

Key technical indicators are starting to align for a potential recovery, spurred by positive macroeconomic developments and changing political rhetoric. Although Bitcoin dipped below 95,000, breaking it’s ascending broadening wedge pattern, analysts have shifted their outlook from expecting a deeper correction to anticipating a possible turnaround as sentiment improves.

The Federal Reserve has adopted a more relaxed stance on short-term inflation, suggesting it may overlook temporary inflation spikes during its recent FOMC meeting, potentially paving the way for future easing measures. President Donald Trump has also softened his approach toward reciprocal tariffs, showing a willingness to be more flexible and contributing to a more positive economic outlook amid uncertainties.

Some altcoins show resilience in a market marked by low trading volumes and caution. Notably, Hyperliquid’s HYPE token surged 21% following a report titled “HYPE Reloaded: Is the Dip a New Entry Point?” This increase indicates a selective breakout reminiscent of previous trends, such as in September 2024, when initial trader indifference preceded a significant market upturn. The report emphasizes the importance of systematic and model-driven strategies to identify early trend shifts, particularly in quieter phases. Looking ahead, 10x Market Updates highlights the necessity of monitoring macroeconomic signals and maintaining disciplined investment strategies to prepare for potential catalysts that could influence Bitcoin’s recovery.

In a related analysis, 10x Research pointed out that a substantial portion of inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) appears to be driven by short-term trading rather than long-term investment strategies. Since their launch in January 2024, these ETFs have recorded approximately $39 billion in net inflows. However, Markus Thielen, Head of Research at 10x Research, estimates that only 17.5 billion—around 44%—represents genuine long-term holdings.

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