Bitcoin holds strong near $86K amid Fed's hawkishness and inflation fears

The flagship cryptocurrency Bitcoin continues to hold firm near the $84,000 mark, despite heightened volatility across traditional markets, driven by the US Fed Jerome Powell’s renewed hawkishness, persistent inflation concerns, and rising Treasury yields. 

 

At around 10:40 AM on Thursday, Bitcoin, the world’s largest cryptocurrency, was quoted trading at approximately $86,174.94, up 0.55 per cent. The 24-hour trading volume for the flagship currency stood at $28.05 billion, while its market capitalisation was approximately $1.67 trillion, according to data from CoinMarketCap. 

 

              (Source: CoinMarketCap)

 

This price stability, even as rate cuts are taken off the table for May, Riya Sehgal, research analyst at Delta Exchange, said, underscores crypto's evolving market maturity and its growing appeal as a long-term asset class. Institutional flows provide further insight, as on April 16, Bitcoin ETFs saw a strong net inflow of 672 BTC (approx. $56 million), led by BlackRock’s iShares, reflecting robust institutional conviction.

 

Bitcoin has traded in the range of $83,154.29 to $85,428.28 in the last 24 hours. According to Edul Patel, co-founder and CEO of Mudrex, this range-bound trading indicates that the market is looking for a clear signal to break out.

 

"While macroeconomic uncertainty keeps price action subdued, BTC Spot ETFs have played a key role in stabilising sentiment," said Patel. Additionally, Fed Chair’s positive stance on stablecoins has sparked hopes for more accommodating crypto regulations. However, his hawkish tone on Trump’s tariffs has reduced market expectations for near-term rate cuts, leading to some profit-taking.

 

"For Bitcoin, a decisive move above $86,300 could trigger a new rally, with strong support holding at $82,000," said Patel.

 

Meanwhile, Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalisation, was quoted trading at around $1,596.22, up 1.33 per cent. "Ethereum is trading near its realised price, a level historically associated with accumulation phases, there’s a compelling case for a potential rebound," said Sehgal. However, Ethereum ETFs recorded net outflows, with Fidelity alone pulling 2,248 ETH, suggesting more cautious sentiment toward ETH in the near term.

 

Among other popular cryptocurrencies, Solana (SOL) was trading higher by 4.65 per cent, and Ripple (XRP) gained 0.79 per cent. Binance Coin (BNB), on the other hand, traded with a marginal loss of 0.05 per cent. Meanwhile, the US dollar-linked stablecoin Tether traded at $0.9999, up 0.01 per cent. 

 

Looking ahead, analysts said regulatory clarity, particularly the Fed’s softening stance on crypto banking, paves the way for structural growth. While the short-term sensitivity to liquidity remains, the long-term fundamentals for digital assets continue to strengthen.