Bitcoin investors are closely watching the upcoming U.S. Personal Consumption Expenditures (PCE) inflation report set for release on March 28, which could play a key role in shaping market sentiment. The report, published by the U.S. Bureau of Economic Analysis, tracks inflation based on consumer spending and is expected to provide insight into broader economic conditions. Analysts believe easing inflation concerns could push Bitcoin higher, with some predicting a rise to $110,000 before a potential pullback to $76,500.

Bitcoin has historically performed well in April, averaging a 12.9% monthly return, according to CoinGlass data. The Federal Reserve’s recent decision to ease its monetary tightening could further boost liquidity, which some analysts say may contribute to a price increase. Juan Pellicer, senior research analyst at IntoTheBlock, noted that Bitcoin’s recovery is being driven by institutional interest and large investments. “BTC is showing signs of recovery, driven by growing institutional interest and significant investments from large players,” he said.

Global trade tensions remain a major concern for investors. Bitcoin’s price has dropped over 14% since U.S. President Donald Trump announced import tariffs on Chinese goods on Jan. 20. However, markets have rebounded slightly following Trump’s indication that some trading partners might receive exemptions or reductions in tariffs. Despite this, uncertainty remains. Nicolai Sondergaard, a research analyst at Nansen, pointed out that market pressure is likely to continue until at least April 2, depending on whether countries reach agreements on trade policy. “I’m looking forward to seeing what happens with the tariffs from April 2nd onward. Maybe we’ll see some of them dropped, but it depends if all countries can agree,” he said.

QCP Group, a Singapore-based digital asset firm, highlighted the PCE report as a key factor in Bitcoin’s movement. “As we approach Friday’s quarterly expiry, with the highest open interest in topside strikes above $100K, we don’t expect major volatility driven by options positioning alone. But attention will turn to the PCE inflation print, which could become the next key catalyst,” the firm stated on Telegram.

Risk assets have experienced some recovery after Trump signaled that exemptions from tariffs might be possible, helping to ease market jitters. While some analysts remain cautious about continued volatility, many believe that Bitcoin is more likely to reach new highs before experiencing any significant correction. The broader economic landscape remains uncertain, with inflation concerns, trade policies, and shifting monetary strategies influencing investor sentiment. With the PCE inflation report approaching, Bitcoin traders will be watching closely for any signs of easing macroeconomic risks that could drive further price movement.