Analysis: BTC May Temporarily Remain in the $80,000 to $90,000 Range; Liquidity Catalysts Needed for Sustained BTC Growth
PANews April 18th — Matrixport pointed out that despite the ever-changing altcoin craze, Bitcoin remains strong. Since the launch of Ethereum spot ETFs in the US last year, Ethereum's market dominance has declined by nearly 50%. Many altcoins have experienced rapid rises followed by steep declines, forming a pyramid-like price structure. To sustain Bitcoin's growth, liquidity catalysts such as dovish signals from the Federal Reserve, interest rate cuts, growth in stablecoins, and increased futures leverage are needed. However, the current crypto market is lacking significant liquidity inflows, and the probability of a large-scale altcoin surge in the short term is low.
The Federal Reserve might not adjust rates over the summer to assess the impact of tariffs on inflation. Although the market expects four rate cuts in 2025, Federal Reserve Chairman Powell stated that he will proceed with caution. Recently, the minting volume of stablecoins has decreased, supporting the possibility of Bitcoin temporarily remaining in the $80,000 to $90,000 range. Despite subdued trading volume, a weakening dollar may increase global money supply, thereby supporting Bitcoin prices. Additionally, a reduction in regulatory risks has also made Bitcoin perform better in the current market adjustment than before.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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