Bitcoin Price Remains Flat as Market Volatility Shows Signs of Easing

Analysts suggest a cooling off in crypto market volatility, with Bitcoin currently at $85,000. The sensitivity to geopolitical tensions and Federal Reserve policies is notable. Expectations for U.S. rate cuts are rising, prompting mixed sentiments about altcoins. Notably, Binance is advising countries on creating Bitcoin reserves, influenced by recent U.S. policies.

Recent analyses indicate that cryptocurrency market volatility may be subsiding, although Bitcoin could still experience temporary dips before potentially surpassing $90,000. Currently, Bitcoin (BTC) is priced around $85,000 and has shown sensitivity to geopolitical tensions, specifically the implications of Trump’s tariffs, which the World Trade Organization fears could hinder global economic growth.

Moreover, Federal Reserve Chair Jerome Powell has faced criticism for his slow response to the economic situation, as the Fed remains hesitant on interest rate cuts. This has led Trump to express his dissatisfaction, suggesting Powell’s removal would be timely, emphasising the need for reduced borrowing costs. Although the Fed is an independent entity, the President recently signed an executive order aimed at augmenting federal influence on monetary policy.

In contrast, the European Central Bank (ECB) has cut its main interest rate for the third time this year, whereas the Fed’s last adjustment occurred in December. Analyst Valentin Fourner from BRN highlights that expectations for U.S. rate cuts in 2025 remain high, with the probability of three cuts now at 48%. He believes Bitcoin’s market dominance could suggest weaker performance for altcoins in the near term.

Fourner maintains an overweight position on Bitcoin for its macro resilience, remains neutral on Solana for its rebound potential, and suggests neutrality for Ether due to its current discounted pricing. While Bitcoin has experienced a decline of 9.3% this year, Ethereum’s price has plummeted by 52%. A looming obstacle for the crypto sector involves the absence of positive triggers that could stimulate buying and tighten supply.

An interesting development in the market is Binance’s advisory role to several nations on establishing Bitcoin reserves. CEO Richard Teng has indicated that Trump’s initiative to build a digital asset stockpile has prompted other countries to consider similar strategies, potentially influencing future cryptocurrency market dynamics.