Lawrence Zenga
May 13, 2025 15:36
Bitcoin rebounds to $ 100,000 after an increase in positive macroeconomic factors and institutional interests after 32% drop in this year.
According to Bitfinex Alpha, Bitcoin (BTC) made a significant comeback after $ 100,000 after a significant dip earlier this year. The resurrection decreased by 32% at the historical peak of January and faced adversity and emphasized the rebound of Bitcoin.
Factors behind Bitcoin’s rally
The recent rise in bitcoin prices is due to some positive macroeconomic factors. The core of these is to relieve trade tensions and more positions of the Federal Reserve. This development coincides with a wider market risk appetite, which can surpass traditional stocks in terms of profit.
Institutional interest and warm chain data
In particular, it seems sustainable that capital flows into Bitcoin. According to the on-chain data, the realized capital of Bitcoin has reached a new high, and has been introduced to the Exchange-Traded Funds (ETF) over the past two weeks. The number of BTCs in losses has significantly reduced, and more than 3 million BTCs have returned to profit. As long as the macro conditions are maintained in a favorable state, the short -term deep dip is likely to be absorbed quickly, so the additional price hike is supported.
Position
Meanwhile, the Federal Reserve did not change interest rates, emphasizing the risk of conversion in concerns about inflation and unemployment. Jerome Powell emphasizes uncertainty over economic prospects, indicating that more data is needed before making additional policy decisions. Despite the market expectations for the rate cut in July, the Fed remains prudent and prioritizes price stability over a quick response to slowing growth.
Energy market and trade development
In the energy sector, oil prices fell due to the increase in the production target of OPEC+. However, gasoline prices in the United States are still high due to limited purification capacity and seasonal demand. This inconsistency indicates that the retail fuel cost will only decrease if the supply problem is solved and the oil price is low.
In addition, the recent famous US-UK Trade Agreement provides slightly economic benefits. Targets for certain products, such as British automobiles and US agricultural products, have been reduced, but this contract lacks a comprehensive application, so major trade problems are not discontinued.
Cryptocurrency sector and regulatory environment
In spite of continuous regulations and political obstacles in the Cryptocurrency sector, the interests of institutions and governments are increasing. New Hampshire has become the first US country to pass a bill that allows investments in cryptocurrency and precious metals, reflecting digital asset integration trends at the US level.
The legislative grid lock continues in Washington, as proved by the failure of passing the Senate’s genius. Meanwhile, BLACKROCK worked with the US Securities and Exchange Commission (SEC) to discuss the introduction of Staying functions and improving the transaction rules of encryption ETFs. This meeting is an important stage of digital asset management, and BLACKROCK supports Etherum -based ETF staying and product features. In addition, since the agency participates more actively in forming a digital asset space, it indicates a change in the approach of the SEC.
For more information, visit the Bitfinex Alpha website.
Image Source: Shutter Stock