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The financial stimuli in China and Europe increases the focus of investors on bitcoin prices.
The US Federal Reserve Bank is under political pressure to lower the rate as DXY weakens.
Bitcoin’s separation in the traditional market is attracting attention.
Bitcoin (BTC) traders are somewhat embarrassing as BTC prices increase to $ 85,000. In particular, the S & P 500 fell 5.7% in April, which rebounded 14% to $ 74,400 after the cryptocurrency recorded 14% rebounds before and after trade. Investors are carefully optimistic, but multiple events and data benefit additional $ 90,000.
Some metrics and events support “decipuling”. In other words, the price of Bitcoin does not follow traditional financial instruments. However, some skepticism comes out because the BTC does not match the performance of GOLD. Gold has reached a record of $ 3,358 on April 16, leading to speculation that the government and central banks are increasing gold reserves.
Global stimuli increases as the US economy shows its initial weaknesses.
As the central bank responds to the threat of economic downturn, the opportunity to increase monetary supply is increasing. Although the Federal Reserve Bank (Fed) prevented lower interest rates or expanded the balance, other countries have already taken such measures. This began to show signs of weaknesses by putting more pressure on the US economy.
In China, a new bank loan reached $ 500 billion in March, more than 20% of the analysts’ predicted, and a strong recovery in the decrease last month. According to Reuters, PBOC promised to increase stimulating measures to reduce the impact of trade wars with the United States.
On April 17, the European Central Bank cut the seventh interest rate in one year to support the Eurozone economy. According to Reuters, the ECB has lowered its capital cost to the lowest level since late 2022. In addition, the tariff war has reduced inflation predictions in this region because it can reduce the gross domestic product in this area by 0.5%.
Long -term promise of US dollars and Bitcoin miners
Since the DXY index has fallen to the lowest level in three years, adding pressure to end the limited monetary policy to the US Federal Reserve Bank is weaker than the major US currencies. Weak dollars generally help to export, which can be positive for current account balance, but this will not last during the trade war.
Investors’ confidence was also hurt by public criticism of the Fed Chairman Jerome Powell. This situation makes the US dollar weaker because it is more difficult for the US Treasury to publish and maintain the Treasury. President Trump even said that Powell’s demolition could not come quickly.
However, according to the current macroeconomic data, there is little reason to support more comfortable monetary policies than the Federation of the United States. According to Reuters, Powell repeatedly repeated the labor market on April 16.
relevant: When the gold price reaches the new peak, history shows ‘Bitcoin followed by’ within 150 days -Analysts
Bitcoin miners also showed strong long -term promises as the hashrates increased 8% compared to the previous month. According to GlassNode, since half of Bitcoin was suspended in April 2024, merchants were worried that many miners would leave more miners.
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