US Inflation Report On Friday Could Spark Bitcoin Rally In April

Bitcoin could surge to $110,000 as investors await important PCE inflation data from the US, with analysts suggesting that reduced macroeconomic risks could lead to a strong performance in April.

Both traditional and cryptocurrency investors are eagerly anticipating the release of the US Personal Consumption Expenditures (PCE) data this Friday, which could alleviate concerns about inflation and boost investor interest in risk assets like Bitcoin.

The US Bureau of Economic Analysis (BEA) is set to release the PCE report on March 28, which tracks the inflation of prices consumers pay for goods and services.

According to QCP Group, a Singapore-based digital asset firm, the PCE inflation report could serve as the “next key catalyst” for Bitcoin and other risk assets.

In a Telegram message, QCP stated:

“As we approach Friday’s quarterly expiry, with the highest open interest in calls above $100K, we don’t expect major volatility driven by options positioning alone. But attention will shift to the PCE inflation print, which could become the next key catalyst.”

QCP also noted that risk assets saw a significant rebound after "Trump signaled twice on Monday that trading partners might receive exemptions or reductions, offering a reprieve that helped calm market concerns."

Other analysts have pointed to concerns over global trade wars as the primary challenge for increasing investor interest.

Although there have been several positive developments in the cryptocurrency sector, global tariff concerns are likely to keep putting pressure on the markets until at least April 2, according to Nicolai Sondergaard, a research analyst at Nansen.

“I’m interested to see what happens with the tariffs after April 2nd. We might see some lifted, but it will depend on whether all countries can come to an agreement,” Sondergaard explained.

Bitcoin’s price has fallen over 14% since US President Donald Trump announced import tariffs on Chinese goods on January 20, coinciding with his presidential inauguration.

However, analysts believe the upcoming PCE report will alleviate inflation concerns, potentially triggering a significant rally for Bitcoin in April.

Source: CoinGlass

According to CoinGlass data, Bitcoin has historically averaged a monthly return of over 12.9% in April, making it the fourth-best month for Bitcoin's price based on past performance.

Bitcoin could potentially surge to a new all-time high of $110,000 before retracing to $76,500, according to Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom.

Juan Pellicer, senior research analyst at IntoTheBlock, stated that Bitcoin reaching the $110,000 mark seems “plausible in the current market environment.”

“Bitcoin is showing recovery signs, driven by increased institutional interest and significant investments from large players,” Pellicer said. “The Federal Reserve’s recent move to ease monetary tightening could further boost liquidity, supporting a potential price increase in the short term.”

While market volatility could lead to a pullback, Pellicer believes that the overall momentum and support levels indicate Bitcoin is more likely to hit the higher target first.