Bitcoin may stage a recovery above the key $90,000 psychological mark amid easing monetary inflation concerns in the world’s largest economy.

Bitcoin’s BTCUSD over two-month downtrend has raised numerous alarms that the current Bitcoin bull cycle may be over, defying the theory of the four-year market cycle.

Despite widespread investor concerns, Bitcoin may be on track to a recovery above $90,000 due to easing inflation concerns in the United States, according to Markus Thielen, the CEO of 10x Research.

“We can see some counter-trend rally as prices are oversold, and there is a good chance that the Fed is mildly dovish,” Thielen told Cointelegraph, adding:

“This is not a major bullish development, rather some fine-tuning from the policymakers. We think BTC will be in a broader consolidation range but we could trade back towards $90,000.”

Investor confidence may also be improved by Federal Reserve Chair Jerome Powell’s comments indicating that the Fed will “remain on hold amid rising uncertainty among households and businesses,” wrote 10x Research in a March 17 X post, adding:

“Powell also expressed doubts about the sustained inflationary impact of Trump’s tariffs, referencing the 2019 scenario where tariff-related inflation was temporary, and the Fed eventually cut rates three times.”

Meanwhile, investors are eagerly awaiting today’s Federal Open Market Committee (FOMC) meeting, for cues on the Fed’s monetary policy for the rest of 2025, a development that may impact investor appetite for risk assets such as Bitcoin.

FOMC meeting will be crucial for Bitcoin’s trajectory: analyst

Traders and investors will be watching for any hints about the ending of the Fed’s quantitative easing (QT) program, “a move that could boost liquidity and risk assets,” according to Iliya Kalchev, dispatch analyst at Nexo digital asset investment platform.