Bitcoin Price Outlook Turns Bullish Amid Tariffs and Fed Uncertainty

Bitcoin is experiencing a bullish sentiment shift, aiming to reclaim the $85,000 level despite macroeconomic pressures including tariffs and Federal Reserve stances. Market correlations suggest Bitcoin is behaving more like a risk asset than a safe haven, showing strong links with equity indices rather than gold. While Bitcoin has shown resilience, the focus remains on maintaining a price above $83,000 amid a complex economic backdrop.

Bitcoin is currently in a fight for dominance in the market, as it strives to reclaim its position above the $85,000 threshold. Recent developments have led to a shift in online sentiment towards a bullish outlook. Santiment reports that Bitcoin’s social media sentiment score has surged to 1.973 this week, coinciding with price fluctuations between $83,000 and $86,000. This trend has sparked optimism among traders, with many speculating that Bitcoin could reach the $90,000 mark soon, largely influenced by updates related to tariffs and the global economy.

While Bitcoin was once touted as a safe haven asset akin to digital gold, current market behaviour suggests it is acting more like a risky investment. Recent analytics indicate a strong correlation between Bitcoin and the AUD/JPY currency pair, indicating risk-taking behaviour. The correlation coefficient for the past 90 days has reached levels unseen since 2021, while Bitcoin’s relationship with gold has turned negative, displaying a correlation of -0.80. This indicates that Bitcoin and gold are now moving oppositely, likely influenced by factors such as the ongoing U.S.–China trade tensions.

Federal Reserve Chair Jerome Powell has dampened expectations for imminent rate cuts, citing persistent inflation concerns exacerbated by the implications of tariffs introduced during the Trump administration. Powell’s firm stance against acting as a market safety net signals a complex economic environment. Nevertheless, Bitcoin has demonstrated resilience, with a 0.4% increase bringing its value to $84,377. This stability occurs amidst broader market declines, such as the Nasdaq falling over 3%, hinting at a potential decoupling from traditional equity markets.

For the time being, maintaining a price above $83,000 is critical for Bitcoin’s trajectory, as traders await to see if the recent bullish sentiment translates into sustained recovery. Analysts, including Jan3 CEO Samson Mow, suggest that attaining $500,000 per Bitcoin is feasible, though immediate attention is focused on navigating the current economic landscape.