Bitcoin (BTC) price surged by 3% on March 24, distancing from its $76,900 low on March 11

Bitcoin (BTC) price surged by 3% on March 24, distancing from its $76,900 low on March 11, despite failing to sustain the $88,000 level.

Bitcoin (BTC) price rose by 3% on March 24, rebounding from its recent low of $76,900 on March 11. However, the cryptocurrency failed to sustain the $88,000 level, which traders had hoped to see.

Bitcoin price trades 19% away from its all-time high, while gold is trading just 1% below its record high of $3,057.

S&P 500 futures (left) vs. Bitcoin/USD (right). Source: TradingView / Cointelegraph

Some analysts attribute Bitcoin's recent price gains to U.S.-listed company Strategy increasing its BTC reserves, while others highlight macroeconomic factors, such as easing inflation expectations and a softer stance from U.S. President Donald Trump on tariffs.

Despite this constructive backdrop, traders question what factor could drive Bitcoin's daily close above $92,000, a feat last achieved on March 3.

Bitcoin's upside limited as investors fear economic recession

Economists anticipate signs of a slowdown in the "core" Personal Consumption Expenditures (PCE) index, which is projected to display a 2.7% rise in February, according to Yahoo News.

Implied expectations for the Sept. 17 FOMC. Source: CME FedWatch tool / Cointelegraph

This data, the U.S. Federal Reserve's preferred inflation metric, is set to be released on March 26.

If confirmed, the softer inflationary trend would provide support for Federal Reserve Chair Jay Powell's remarks on transitory inflation and increase the likelihood of two interest rate cuts in 2025, as reflected in the Treasury futures market.

As the U.S. central bank shifts to a less restrictive monetary policy, risk markets typically benefit from increased liquidity and reduced fixed-income appeal. However, there is still some uncertainty regarding economic growth.

Investors are increasingly worried about recession risks due to excessive valuations in artificial intelligence stocks and concerns that U.S. federal spending cuts could negatively impact consumers and the commercial real estate market.

While these issues have little direct connection to Bitcoin, traders fear that all risk markets could suffer if the threat of stagflation emerges.

The Wall Street Journal reported that President Trump is considering scaling back some tariffs initially planned for April 2. Although unconfirmed, the news suggests Trump may exclude certain industry-specific duties and grant exemptions to some nations.

On March 24, S&P 500 futures rose by 1.5% as investors perceived lower economic contraction risks, which could potentially support Bitcoin's price gains.

Strategy buys more Bitcoin, but is their tactic sustainable?

On March 24, Strategy announced the acquisition of an additional $584 million in Bitcoin, increasing its holdings to 506,137 BTC. The funds for this latest purchase came from the sale of 1.97 million common stock shares, along with the broader $21 billion STRK perpetual preferred stock issuance program.

These expanded fundraising options have improved the company's chances of reaching its ambitious $42 billion Bitcoin acquisition target.

However, critics argue that Strategy has been the primary factor supporting Bitcoin's $80,000 level, posing a risk of price corrections if the company fails to raise additional funds or pauses its stock issuance program for any reason.

This view disregards the fact that Bitcoin spot exchange-traded funds (ETFs) saw $786 million in net inflows between March 14 and March 21.

In essence, Bitcoin is well-positioned to recapture the $92,000 level, although it remains heavily dependent on overall macroeconomic conditions.