Analysts raise concerns about tariff-related uncertainty and its potential impact on Bitcoin prices.
Tariff Uncertainty as a Threat to Bitcoin
Swyftx analyst Pav Hundal noted that tariff uncertainty from US President Donald Trump poses a significant risk for investors betting on Bitcoin in the upcoming two months. Hundal stated, 'The biggest threat to bulls right now is that nothing changes over the next two months, and we just stay trapped in this cycle of endless tariff ultimatums.'
Federal Reserve Policy
Hundal highlighted the risk that US policymakers might delay monetary easing until they obtain 'hard data' on the impact of Trump's tariffs, potentially leading to a growth slowdown. At the Federal Reserve's rate-setting committee meeting on May 7, key rates were held steady in the 4.25% to 4.50% range due to rising risks of higher unemployment and inflation.
Prospects for Bitcoin Growth with End of Tariffs
Hundal pointed out an optimistic scenario where an end to tariff disputes would create a 'glide path' for Bitcoin to reach $120,000 in June. Analysts from Bitfinex previously suggested that Bitcoin could surge to new all-time highs above $115,000 in July, should institutional buying continue and if US job data turns out to be 'weaker-than-expected.'
Given the current tariff uncertainty, forecasts for Bitcoin remain conflicting, and time will reveal how these factors will affect the cryptocurrency market.
