The US Treasury Market experiences its highest volatility in four months, potentially jeopardizing an expected Bitcoin (BTC) price extraction.

US inflation data for February came in softer than expected, strengthened the case for federal reserve rate reductions. Reading called on some analysts to predict a Bitcoin price recovery to $ 90,000 and higher. It’s currently about $ 82,000.

“With inflation cooling and recession fears that are still threatening but not worsening, Bitcoin could be on the verge of his next big outbreak pushing past the stubborn under $ 90K range,” Matt Mena, Crypto Research strategist at 21Shares, said in an email.

However, any recovery could unfold slower than expected, as the Merrill Lynch Option Volatility Estimate Index (Move) measuring the expected 30-day volatility of the US Treasury has risen to 115, the highest since November 6, according to Data Source TradingView. It has jumped 38% in three weeks.

Increased volatility of the US Finance Ministry, which dominates global security, securities and financing, affect negative leverage and liquidity in the financial markets. This often leads to reduced risk taking in the financial markets.

The moving index collapsed after the November 4th and facilitated financial conditions that probably helped BTC’s wave to as high as $ 108,000 from $ 70,000.

Cryptocurrency’s rally topped in December-January when the move was tied out.