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- Bitcoin’s price is climbing, with analysts predicting it could reach $110K due to a shift in Federal Reserve policy as Trump’s April 2 tariff deadline nears.
- Growing institutional interest is driving Bitcoin’s momentum, with spot Bitcoin ETFs recording six consecutive days of inflows and companies like Metaplanet acquiring significant BTC holdings.
- Market watchers are focused on the Fed’s upcoming inflation reports, which could influence Bitcoin’s price direction, either pushing it higher or triggering a potential pullback.
With Donald Trump’s April 2 tariff deadline, financial markets are preparing for impact. Investors are waiting anxiously for clarity on trade policies, but Bitcoin traders are looking for something much more significant, a violent price move.
After a rollercoaster week that saw Bitcoin dip below $80,000 prior to bouncing back to $85,000, the top cryptocurrency is on the move once more. At $87,000 and climbing, volatility remains high, yet some experts believe this is only the beginning of a much larger surge.
Former BitMEX CEO Arthur Hayes is standing by his prediction Bitcoin is heading to $110,000. His conviction is rooted in a major shift he anticipates in Federal Reserve policy. Hayes thinks the Fed will reverse from quantitative tightening (QT) to quantitative easing (QE), releasing a flood of liquidity into the markets—an event he believes will catapult Bitcoin to new heights.
Despite concerns about inflationary pressures from Trump’s tariffs, Hayes remains unfazed. He aligns with Fed Chair Jerome Powell’s stance that any inflationary spikes will be temporary, clearing the way for continued institutional investment in Bitcoin.
Bitcoin Momentum Fuels Institutional Inflows
Bitcoin’s bullish momentum is gaining strength. The asset is 3.45% higher in the last 24 hours, above $87,700. More importantly, trading volume has jumped by 74%, and futures open interest has risen 7.79% to over $56 billion. The rising leverage is squeezing short sellers, triggering $50 million worth of liquidations within a day.
It’s not just Bitcoin seeing inflows. Ethereum is 3.3% higher at $2,069, and XRP is up 3.1%. Solana is fronting the altcoin rush with a 6.2% gain, with Cardano (+2%) and Polygon (+2.8%) following. Even memecoins are joining the party; Dogecoin is up 3.5%, and TRUMP has risen 9.4%, suggesting risk appetite is renewed.
As markets prepare for volatility, everyone is waiting for the Federal Reserve’s next core PCE price index report, its favored inflation metric. Inflation is likely to edge up from 2.6% to 2.7%, a shift that may change sentiment across risk assets.
In addition, the Fed will also release its final one-year inflation forecast this week, which will offer another insight into future monetary policy. Any hint of easing would be rocket fuel for Bitcoin’s next leg higher.
Bitcoin Institutional Boom ETFs Surge as BTC Eyes 110K
Bitcoin’s meteoric price increase is being fueled by a wave of institutional investors. U.S. spot Bitcoin ETFs have seen six straight days of inflows, indicating ongoing demand. At the same time, large corporations are increasing their BTC holdings.
One such instance is Japan’s Metaplanet, which recently accumulated 150 BTC in its holdings, bringing its total to 3,350 BTC. In spite of a staggering 68.3% return on investment in the current year, the corporation is holding on to its Bitcoin-centric strategy backed by prominent industry stakeholders like Eric Trump and MicroStrategy’s Michael Saylor.
With a perfect storm of macroeconomic shifts, institutional demand, and market momentum, Bitcoin’s rise to $110,000 might be coming sooner rather than later. Traders should still be wary, as any unexpected data surprises or liquidity crunches could pull the price back to $76,500 before the next leg higher.
As the countdown to April 2 continues, one thing is certain: Bitcoin price action is heating up, and the crypto world is waiting with bated breath. Will we see a breakout, or is another dip on the cards? The next couple of days could define Bitcoin’s trajectory for the next few months.
Related | Ethereum Exchange Supply Plummets to Lowest Since 2015 Amid Price Turmoil
