Bitcoin may potentially rally to $90,000 due to increased monetary stimulus globally, pressure on the US Federal Reserve to lower interest rates, and Bitcoin’s detachment from traditional markets. Positive signals include a rebound in Chinese bank loans and the European Central Bank’s interest rate cuts. Additionally, a weak US dollar and the commitment of Bitcoin miners also bolster confidence in Bitcoin’s price ascent.
This article discusses four key reasons why the price of Bitcoin could surge to $90,000 in April. Increased monetary stimulus from China and Europe is drawing investors’ eyes towards Bitcoin, especially as the US Federal Reserve faces pressure to cut interest rates amid a weakening dollar. Furthermore, Bitcoin’s decoupling from traditional market movements, while still contrasting with gold’s strong performance, suggests potential for upward price momentum.
As central banks respond to an impending recession, the likelihood of increased monetary supply is rising. The US Federal Reserve has refrained from lowering interest rates, but other nations are already implementing stimulus measures. In March, China documented a remarkable rebound in new bank loans, indicating robust recovery efforts, while the European Central Bank made its seventh interest rate cut since 2022 to bolster the eurozone economy against economic strain.
The declining strength of the US dollar is adding to the pressure on the Federal Reserve, with the DXY Index dropping to a three-year low. Such depreciation positively influences exports but remains unsustainable amidst trade disputes. US President Trump’s criticisms of Fed Chair Jerome Powell are compounding investor uncertainty, impacting the reliance on Treasury issuing to bolster financial stability.
Despite calls for eased monetary policies, recent job market data suggests a resilient labour market, as initial jobless claims dropped significantly. Moreover, Bitcoin miners have demonstrated long-term loyalty, with an 8% increase in hashrate since last month, alleviating fears of potential sell-offs, as miners hold a substantial amount of BTC. Overall, these factors underline a cautiously optimistic outlook for Bitcoin’s price exceeding $90,000.
