Main takeout:
Bitcoin is followed by Bitcoin as the US and China have concluded a contract to end the current trade war and then turned into stocks.
The macroeconomic conditions are returning to stocks away from gold investment.
Bitcoin (BTC) reached the highest price for three months at $ 105,720 on May 12, but could not maintain the strong driving force. Interestingly, it fell to $ 102,000 after temporarily relaxing from the US-Chaina tariff conflict. As a result, merchants wondered why Bitcoin responded negatively to what seemed to be positive.
The 90 -day ceasefire reduced import tariffs, and US Treasury Minister Scott Bessent pointed out that this agreement could be expanded if there were true efforts and constructive dialogue. According to Yahoo Finance, the topic under discussion includes “currency manipulation”, “steel price speculation” and semiconductor export restrictions.
Some of Bitcoin’s recent lack of exercise has gained 24% profit in the last 30 days, and the S & P 500 futures have risen 7% and gold has been flat. Investors, especially, have a 30 -day correlation with the stock market at 83%, so there are few reasons for further radiation between Bitcoin and traditional markets.
Bitcoin also surpassed the market cap of Silver and Google, making it the sixth largest trading assets in the world.
The strategy also raised concerns among investors also reported that it acquired 13,390 BTCs between May 5 and May 11. By holding about 6%of the circulation supply with Blackrock and strategy, some traders are worried that Michael Saylor’s company is responsible for supporting the price.
Critics, such as Peter Schiff, predicted that if the average purchase price of the strategy continued to increase, it could eventually lead to losses and forced the company to sell some shares to cover the cost of borrowing. However, this scenario seems to have little possibility because the company has doubled its capital increase limit of $ 20 billion and $ 20 billion.
As a macroeconomic case, Bitcoin prefers stocks over gold.
Traders often focus on Bitcoin specific events, but the biggest reason for the weakness of $ 105,000 is a wider macroeconomic condition. The suspension of tariffs benefits the stock market directly, but the impact on lack of assets such as Bitcoin is somewhat negative. For example, as the demand for safe assets decreased, Friday, May 12, decreased 3.4%.
Gold generally showed a reverse correlation with the US dollar index (DXY), which rose to the highest level in 30 days on May 12. Strengthening the signal of the US dollar signal has strengthened investor trust despite the 0.3% decrease in gross domestic product in the US first quarter and the increase of housing sales in March compared to last month.
relevant: Bitcoin short -term short -term ‘technology selling’ is less than $ 100K ahead of CPI print on May 13
When the price is traded at a price of nearly $ 105,000, the guilty deficiency among Bitcoin investors is at least partially regarded as a more immediate and direct beneficiary of the US-QHINA trade transaction due to the decrease in demand for insufficient assets. Lower import tariffs have a high profits of the company and have potentially improved profit margins.
Between May 1 and May 9, if $ 2 billion in the US Spot Bitcoin Exchange Trading Fund (ETF) is still low, the price of less than $ 100,000 is still low. After a 24%monthly profit, the steady demand for bitcoin is more institutional adoption than the retail -centered FOMO, which is a very positive signal at the price.
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.