Bitcoin Surges Past $90,000 Amid Market Volatility and Optimistic Forecasts

Bitcoin has recently surged past $90,000, signalling potential recovery amid market volatility. Analysts note that Trump’s impact on the Federal Reserve may further bolster this rise. Predictions suggest Bitcoin could reach between $130,000 and $138,555 by the end of 2025, driven by macroeconomic factors.

Bitcoin has surged past the $90,000 mark for the first time in six weeks, indicating a potential reversal in its recent downward trend. Analysts suggest that if Bitcoin surpasses this threshold, it could signify a broader recovery for the cryptocurrency, which had previously fluctuated between $75,000 and $90,000. Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, emphasises this breakout point.

Previously, Bitcoin had experienced a decline since the inauguration of President Trump, sitting 20 percent below its record high of $107,000. However, recent market volatility appears to be driving renewed interest in cryptocurrencies. Investors see Bitcoin and gold as viable alternatives during periods of financial instability, diverting funds from more volatile stocks.

Trump’s criticisms of Federal Reserve Chairman Jerome Powell could inadvertently support Bitcoin’s rise by increasing overall market volatility. Analyst Brett Knoblauch from Cantor notes that a potential replacement for Powell by a more dovish Federal Reserve chair could lead to lower interest rates, favouring cryptocurrency performance.

Looking ahead, forecasts for Bitcoin’s performance in 2025 are optimistic. Christopher McMahon, CEO of Aquinas Wealth Advisors, suggests that Bitcoin could reach $130,000 under the influence of a crypto-friendly government. Further analysis by 21Shares anticipates a potential price of $138,555 by the end of 2025, driven by macroeconomic factors and strong on-chain activity.