Bitcoin prices pump, but will BTC break 92K$92K soon?

Bitcoin (BTC) prices skyrocketed 3% on March 24, distancing themselves from the low of $76,900 on March 11, despite failing to maintain the $88,000 level. Currently, traders are wondering what caused the last Bitcoin daily closing to over $92,000 on March 3rd. In addition to cryptocurrency investors' frustration, Gold is just 1% below its record high of $3,057, while Bitcoin prices are trading 19% off its all-time high.

While some analysts attribute Bitcoin's recent price rise to its US-listed corporate strategy to increase BTC reserves, others have highlighted macroeconomic factors, such as ease of inflation expectations on tariffs and a soft stance from President Donald Trump. Despite this constructive background, traders wonder whether Bitcoin is preventing it from maintaining its bullish momentum.

Bitcoin's benefits are limited as investors fear economic recession

According to Yahoo News, economists are hoping for signs of slowing down the “core” personal consumption spending (PCE) index. This data is a US Federal Reserve priority inflation metric and is expected to be released on March 26th.

If confirmed, the softer inflation trends will support Federal Reserve Chair Powell's remarks on temporary inflation, increasing the likelihood of two interest rate cuts in 2025, as reflected in the Treasury futures market.

As US central banks move towards less restrictive monetary policy, risk markets typically benefit from increased liquidity and reduced appeal for fixed income. However, uncertainty about economic growth remains.

Investors are increasingly concerned about the risk of a recession due to excessive valuations of artificial intelligence stocks and concerns that US federal spending cuts could have a negative impact on consumers and the commercial real estate market. These issues have little direct connection to Bitcoin, but traders fear that all risk markets could suffer if the threat of stagflation appears.

The Wall Street Journal reported that President Trump is considering reducing tariffs originally planned on April 2. The news suggests that Trump may exclude certain industry-specific obligations and grant exemptions to some countries. On March 24, the S&P 500 futures rose 1.5% as investors could recognize lower economic contraction risks and support Bitcoin's price rise.

Strategies buy more bitcoin, but are their tactics sustainable?

On March 24th, the strategy announced an additional $584 million acquisition in Bitcoin, increasing its holdings to 506,137 BTC. The funds for this latest purchase were fed along with a sale of 1.97 million shares of common stock and a permanent preferred share issuance program of $21 billion. These expanded funding options have improved the chances of reaching an ambitious $42 billion Bitcoin acquisition target.

The news appears to be positive for Bitcoin prices in the short term, but if the US Federal Reserve implements expansionist measures, corporate revenues will accelerate and stocks will be relatively cheap. Similarly, lowering the risk of a full-scale global tariff war will result in profits in the stock market and lower risks in the artificial intelligence and commercial real estate sectors.

Related: Bitcoin hits $110K before $76.5K “More Possible” – Arthur Hayes

Critics argue that the strategy is a major factor supporting the $80,000 level of Bitcoin, poses a risk of price correction if the company does not raise additional funds or suspends its share issuance program for any reason. However, this view overlooks the fact that Bitcoin's Spot Exchange Sales Fund (ETF) saw a net inflow of $786 million between March 14th and March 21st.

Essentially, Bitcoin is good for recapturing the $92,000 level, although heavily dependent on overall macroeconomic conditions. Regardless of gold's performance, investors view Bitcoin as a risk-on asset, favoring a higher correlation with the stock market, at least in the short term.

This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph's views and opinions.