Bitcoin’s price dropped below the $80,000 mark after reaching a temporary support level at $81,000. As of now, it trades around $79,188.44, showcasing a 1.81% recovery over the past 24 hours. This decline coincides with the release of US economic data, specifically inflation rates for March. The inflation rate rose to 2.4%, according to the official figures from the U.S. Labor Department. This marks a significant change compared to February’s rate of 2.8%. It’s also worth noting that this is the lowest recorded inflation since September, with a month-to-month price decline for the first time since last September. This shift in market conditions has sparked optimism among investors that the cooling down of inflation will benefit crypto assets like Bitcoin. Analysts predict that Bitcoin could reach $250,000 by the end of 2025, according to Cardano founder Charles Hoskinson. However, this positive outlook is intertwined with ongoing uncertainties related to US-China trade tensions and President Trump’s stance on interest rate adjustments. These factors have influenced stock market movements, causing sharp declines in futures trading and a shift in Treasury yields towards negative territory. Meanwhile, the growing influence of cryptocurrencies within tech giants such as Microsoft and Apple suggests further potential for growth. President Trump’s announcement of retaliatory tariffs against several countries coupled with his call for lower interest rates from the Federal Reserve has created additional market volatility. Despite these challenges, Bitcoin managed to bounce back above $80,000 following recent developments regarding tariff policies. This rise in price coincides with a surge in trading volume, reaching $69.39 billion on Wednesday – an encouraging sign of heightened investor activity for the cryptocurrency.