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Bitcoin Price Hints Breakout As US Recession Odds Hits New Highs – Crypto News

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Bitcoin Price Hints Breakout As US Recession Odds Hits New Highs

The Bitcoin price currently boasts a bullish outlook, with the odds of a US recession happening this year reaching new highs. Amid this recession, fear, and market uncertainty, crypto analyst Titan of Crypto has predicted that a BTC breakout is on the horizon, with the flagship crypto reaching new highs soon.

Bitcoin Price Hints Breakout As Recession Concerns Rise

In an X post, Titan of Crypto stated that the Bitcoin price is breaking out of the range and looks strong. He added that a daily close above $96,200 would confirm the move and open the door toward $99,000.

Bitcoin price

In another post, the analyst predicted that the flagship crypto could rally to as high as $125,000, which will mark a new all-time high (ATH). He noted that BTC has bounced off the orange line of the Golden Ratio Multiplier and is now aiming for the blue line, which is at the $125,000 price target.

Bitcoin

This bullish outlook for the Bitcoin price comes as the odds of a US recession surge to new highs. Polymarket data shows that there is now a 62% chance that a recession will happen this year, a development that could be bullish for BTC and altcoins.

It is worth mentioning that BTC is already reacting positively to this development, seeing as it has surged to the $97,000 mark today. The Ethereum price and other altcoins have also recorded notable gains.

US Federal Reserve At Crossroads & What It Means For The Crypto Market

Market commentator The Kobeissi Letter noted how the US Federal Reserve is currently at a crossroads, with the Q1 GDP data and PCE inflation data showing that stagflation in the country is worsening. They remarked that the US is facing rising inflation with a weakening economy, which means the Fed is “officially in a lose-lose situation.”

This is because the Powell and the Fed have, for a while now, been hesitant about cutting rates because of the inflationary pressures caused by Donald Trump’s tariffs. However, with the US economy slowing, they have to make a tough decision.

The Kobeissi Letter remarked that the Fed must choose between containing either inflation or unemployment. They added that not reducing interest rates will further weaken US GDP and likely increase unemployment. However, if interest rates are cut immediately, there is likely to be another rebound in inflation.

A Fed rate cut would be bullish for the Bitcoin price as it would inject more liquidity into the flagship crypto. However, as CoinGape reported, the US Central Bank is unlikely to cut rates at this May FOMC meeting.

Instead, traders are looking forward to the Fed easing its monetary policies starting from June. In the meantime, Bitcoin could still continue to rally amid this market uncertainty caused by tariffs and a lack of clarity as to what the Fed’s next move will be.

The post Bitcoin Price Hints Breakout As US Recession Odds Hits New Highs appeared first on CoinGape.

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