Bitcoin eyes $90K amid easing inflation

Bitcoin (CRYPTO:BTC) may stage a recovery above the $90,000 mark as inflation concerns in the U.S. ease, according to analysts.

This potential surge is linked to the Federal Open Market Committee (FOMC) meeting, where the Federal Reserve maintained interest rates at 4.25%-4.50% and signaled potential rate cuts later in 2025.

Markus Thielen, CEO of 10x Research, noted that Bitcoin could experience a counter-trend rally if the Fed adopts a mildly dovish stance.

"We can see some counter-trend rally as prices are oversold, and there is a good chance that the Fed is mildly dovish," Thielen said, adding that this is not a major bullish development but rather a fine-tuning by policymakers. 

Investor confidence may be boosted by Federal Reserve Chair Jerome Powell's comments on maintaining current rates amid economic uncertainty.

Powell also expressed doubts about the sustained inflationary impact of Trump's tariffs, referencing past scenarios where tariff-related inflation was temporary.

The FOMC meeting is crucial for Bitcoin's trajectory, as any hints about ending quantitative tightening could boost liquidity and risk assets.

"If Chair Powell spreads his dovish wings, Bitcoin could take flight on renewed bullish momentum," analyst Iliya Kalchev noted.

However, persistent inflation concerns or reaffirmed tight financial conditions could limit Bitcoin's upside potential.

Markets are pricing in a high likelihood of steady interest rates, but recession fears remain a concern for Bitcoin's price action.

Bitcoin's recent price movements have been closely tied to broader market sentiment and economic indicators.

Following the FOMC decision, Bitcoin rose to a 10-day high of $85,900, reflecting increased institutional demand and positive market sentiment.

At the time of reporting, the Bitcoin (BTC) price was $86,057.69.