Fed's Inflation Fight Drives Bitcoin Below $82,500

The Federal Reserve has reiterated its commitment to combating inflation, maintaining a "moderately restrictive" monetary policy with high interest rates to exert downward pressure on inflation. However, there remains a risk of inflation resurging, prompting the Fed to closely monitor economic indicators before making any adjustments to interest rates. This stance has heightened market uncertainty, particularly regarding the timing of potential rate cuts by the Fed. Consequently, risk-off sentiment has surged, exerting short-term pressure on risk assets, including Bitcoin (BTC).

According to a Bitunix analyst, if BTC can stabilize above $82,500 in the near term, it is expected to test $85,000 further. In the long term, if BTC can hold above $75,000 and form a bottoming structure, a new round of rebound may occur between April and May. The analyst advises investors to closely monitor changes in market liquidity, manage leverage and positions carefully, and seek better entry points once the Fed's policy direction becomes clearer.

Goldman Sachs has increased the probability of a U.S. economic recession from 20% to 35%, adding to the market's uncertainty and contributing to the risk-off sentiment. This heightened uncertainty has led to increased pressure on risk assets, including BTC, as investors remain cautious about the economic outlook and the Fed's potential actions.