The price of Bitcoin (BTC) increased by 3% on March 24 and failed to maintain $ 88,000 on March 11, but fell to $ 76,900. Traders are now curious about the factors that can lead to more than $ 92,000 of Bitcoin’s Daily Daily’s Daily on March 3. In addition to the frustration of Cryptocurrency Investors, Gold is trading at a price of 1%lower than the record of $ 3,057, while Bitcoin Price trades 19%from the highest ever.
S & P 500 Future (left) vs. bitcoin/USD (right). Source: TradingView / COINTELEGRAPH
Some analysts say Bitcoin’s recent prices increase the price of US listed companies, while other analysts emphasize macroeconomic factors, such as easing inflation expectations and a softer position on US President Donald Trump’s tariffs. Despite these constructive backgrounds, traders question that Bitcoin does not keep the momentum of strength.
As investors are afraid of the economic downturn, Bitcoin’s rise is limited.
According to the Yahoo News, economic scholars are expected to rise 2.7% in February, signs of slowdown in the “core” personal consumption expenditure (PCE) index. This data, the US Federal Reserve Bank’s preferred inflation metrics will be announced on March 26.
Implicit for FOMC on September 17. source: Cme fedwatch tool / Cointelegraph
If it is confirmed, the softer inflation trend will support the temporary inflation of the Federal Reserve Bank Chairman PoWell and increase the possibility of lowering interest rates in 2025 as reflected in the future market.
As the US central bank turns into a less limited monetary policy, the risk market is generally benefited by increasing liquidity and a decrease in fixed income appeals. However, uncertainty remains in relation to economic growth.
Investors are increasingly worrying about the economic recession due to concerns that excessive evaluation of artificial intelligence stocks and US federal spending can have a negative impact on consumers and commercial real estate markets. This problem is not directly related to Bitcoin, but traders are concerned that if a deer threat occurs, all the dangerous markets may have difficulty.
The Wall Street Journal reported that President Trump is considering reducing some of his first tariffs on April 2. Even if it is not confirmed, Trump can exclude the exemptions of certain industries and exemptions for some countries. On March 24, S & P 500 futures increased 1.5% as investors supported Bitcoin’s price profit as investors lowered their risk of economic contraction.
Strategies buy more bitcoins, but their tactics are sustainable?
On March 24, the strategy announced the acquisition of $ 555 million in Bitcoin, and has always set a stake to 506,137 BTC. The latest purchase of the latest purchase occurred with the sale of 19.7 million common stock stocks and the $ 20 billion perpetual preferred Shetsuance Program. This expanded fundraising option has improved the possibility that the company will reach an ambitious $ 42 billion Bitcoin acquisition target.
This news seems to be positive for the price of Bitcoin in a short time, but if the US Federal Reserve Bank implements the extension, corporate income will accelerate and make stock relatively cheaper. Similarly, the decrease in the risk of global tariff wars benefits the stock market and lowers the risk of artificial intelligence and commercial real estate sectors.
relevant: Bitcoin ‘More More’ will be $ 110K before $ 76.5K -Arthur hayes
source: Dexyydx
Critics argue that strategies are a major factor that supports Bitcoin’s $ 80,000, and if the company does not collect additional funds or does not suspend the stock issuing program for any reason, it is a risk of price modification. However, this view overlooks the fact that Bitcoin Spot Exchange Trade Fund (ETF) has earned $ 770 million in net inflow between March 14 and March 21.
In essence, Bitcoin relies heavily on the overall macroeconomic conditions, but is located in a position to regain the level of $ 92,000. Regardless of GOLD’s achievements, investors prefer to correlate with the stock market in the short term, see Bitcoin as a risk asset.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.