Just a pause before the all-time high or a bigger correction is in the cards for Bitcoin? | Forexlive

Bitcoin has been on a great ride since Trump’s tariff pause announcement back on April 9. We’ve seen the same with the US stock market given that the main macro drivers for both are growth expectations and liquidity.

Now, growth expectations continue to improve but a new risk is emerging: repricing in interest rates expectations. We already saw a more hawkish repricing as the market went from expecting 120 bps of easing in 2025 to just 50 bps at the moment. That was based on improving growth expectations and easing in recessionary fears.

Now the market could start focusing back on inflation as the potential surge in demand and economic activity on an easing in uncertainty, could restrain the Fed from cutting rates more than once this year. This repricing might trigger a bigger pullback in Bitcoin and the stock market in the short-term, although the uptrend would remain unchanged.

Therefore, the economic data is now back in focus, especially on the inflation side. Watch out also for hawkish Fed comments.

On the daily chart, we can see that we have an upward trendline defining the bullish momentum. The buyers will likely continue to lean on the trendline to keep pushing into new highs, while the sellers will look for a break lower to extend the pullback into the 93,000 price area.

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