key points:
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Monetary stimulation in China and Europe focused investors on the price of bitcoin.
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The US Federal Reserve is under political pressure to cut rates, as DXY is weak.
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Dickuping of bitcoin from traditional markets attract attention.
Bitcoin (BTC) traders are somewhat surprised by the BTC value, especially the S&P 500 index 5.7% in April, and Cryptocurrency has dropped a 14% rebound to $ 74,400 from its business-war-induced accident. Investors are carefully optimistic, but indicate many events and data points for profit of above $ 90,000.
Many matrix and events support a “decouting”, which means that the price of bitcoin is not closely of traditional financial instruments. However, some skepticism emerges as BTC has not matched the performance of gold. Gold reached an all -time high of $ 3,358 on 16 April, causing speculation that governments and central banks are increasing their gold reserves.
Global stimulation increases as the American economy indicates early weakness
As the central banks respond to the threat of an economic recession, the possibility of an increase in monetary supply is increasing. While the US Federal Reserve (Fed) has prohibited reducing interest rates or expanding its balance sheet, other countries have already taken such steps. This puts more pressure on the American economy, which has begun to show signs of weakness.
In China, in March, new bank loans rebound more than $ 500 billion from $ 500 billion, predicting more than 20% compared to analysts and had a strong recovery from the previous month’s decline. According to Reuters, PBOC has promised to increase stimulation measures to reduce the impact of trade war with the United States.
On 17 April, European Central Bank cut interest rates for the seventh time in a year to support the Eurozone economy. ECB has reduced the cost of capital to its lowest level from the end of 2022. Many investment banks have also reduced their inflation forecast for the region, as the tariff war has reduced the GDP of the region by 0.5%, according to the Reuters.
Long -term commitment of weak US dollar and bitcoin miners
To end its restrictive monetary policy, pursuing the pressure on the US Federal Reserve is the weakening of the US dollar compared to the major global currencies, as the DXY index has fallen to its lowest level in three years. A weak dollar usually helps in export, which may be positive for the current account balance, but this business is unlikely to run during war.
The investor’s confidence has also been hurt by public criticism of the administration of US President Donald Trump’s fed chair Geom Powell. This situation becomes difficult for the American Treasury, which rely on releasing the treasure to continue the treasure, which further weakens the US dollar. President Trump also said that Powell’s removal of Powell may “not come very fast”, while a call has also been made for low interest rates.
However, when current macroeconomic data is seen, there is little reason to support monetary policy more comfortably than the US Fed, especially after the latest US unemployed claims reported on 17 April. The initial claims fell from 9,000 to 215,000 in the week ended on April 12. Pavel reiterated on 16 April that the labor market is in “solid status” according to Reuters.
Connected: When the price of gold hits new heights, history shows ‘bitcoin follows’ within 150 days – analyst
Bitcoin Minors have also shown a strong long -term commitment, as the hasht has increased by 8% compared to the previous month. Since the bitcoin is damaged in April 2024, traders were concerned that the low profit would leave many miners, possibly lead to a selling, as the miners reportedly have about 1.8 million BTCs, according to Glasnode.
This article is for general information purposes and is not intention and should not be taken as legal or investment advice. The ideas, ideas and opinions expressed here are alone of the author and not necessarily reflected or represented the ideas and ideas of the components.
