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Famous Analyst Says Bitcoin and Altcoins Could Soar with the FED in May! - Coin Bulletin
Bitcoin (BTC) is showing new rise signals as inflation in the USA demonstrates its most significant get dumped in recent years, while uncertainty prevails in the markets regarding tariffs and interest rate decisions.
The data released by the U.S. Bureau of Labor Statistics for March revealed a significant dump in U.S. inflation since 2020 and 2021 for the first time. Although this situation caused a temporary calm in the cryptocurrency markets, Bitcoin managed to stay above the psychological threshold of 80 thousand dollars.
BRN analyst Valentin Fournier stated that interest rate cuts may be possible at the FED meeting taking place in May, which could create a positive springboard for cryptocurrencies. Fournier noted that the impact of the tariff tension between the US and China on the market in the short term has been exaggerated and that a positive solution in the near future could emerge.
Valentin Fournier believes that the markets may soon experience a significant inflow of capital into crypto funds. The main reasons behind this expectation include the declining trend of inflation, tariffs having peaked, and the anticipated assumption of office by new SEC Chairman Paul Atkins, who is thought to adopt a crypto-friendly stance.
On the other hand, the selling pressure in the US bond market and stock exchanges is creating a cautious picture in the markets. The US's imposition of tariffs on China reaching 145% and China's response of 125% is deepening the uncertainty in the markets.
Douro Labs CEO Mike Cahill emphasized that the current macro outlook is complex, stating, "Falling inflation, a collapsing bond market, and a 90-day tariff hiatus indicate a serious imbalance in the market."
Amberdata Research Director Mike Marshall stated that the macro outlook for crypto is still pessimistic in the long term, expressing that tariffs and movements in traditional financial markets could create pressure on Bitcoin and other crypto assets. However, according to Cahill, this environment may also trigger a significant capital rotation towards digital assets that provide real benefits, moving away from fragile debt markets in the long term.