
Bitcoin, often referred to as digital gold, is going through a pivotal phase. After a significant drop in a matter of days, the leading crypto seems to be regaining strength. But this comeback hides deeper issues: American inflation, monetary policy, and the dollar's place on the international stage. Far from being a simple market fluctuation, this rise in Bitcoin is taking place in a context where economic and geopolitical pressures are redefining the contours of the global financial landscape.
A recovery supported by economic indicators
After a notable decline between September 5 and 7, 2024, Bitcoin has found a key resistance level around $57,225. This rise in Bitcoin is supported by favorable macroeconomic factors that encourage optimism. Indeed, theImproving global economic outlook, coupled with expectations of slowing inflation in the United Statespaves the way for greater liquidity in the markets. Investors anticipate a less aggressive Federal Reserve on rate hikes, which facilitates access to capital and encourages investments in high-yielding assets, such as Bitcoin.
This rise in Bitcoin is the result of a recovery in the crypto market. Indeed, the positive momentum observed around Bitcoin has led to a rise in other major cryptos in its wake. Ethereum (ETH), for example, rose by nearly 4%, with levels above $2,400, while Binance Coin (BNB) gained more than 5%. This general rise reflects the confidence of investors, who see the potential of cryptos. Bitcoin's resilience in the face of economic shocks is driving optimism, and its role as the driving force of the crypto market seems more confirmed than ever.
Geopolitical issues and the role of the dollar
While economic expectations play a decisive role in Bitcoin’s recovery, geopolitical tensions should not be underestimated. With the US presidential elections in sight, Bitcoin’s future could be influenced by far-reaching political decisions. In particular, former President Donald TRUMP recently proposed a 100% tax on imports from countries that try to bypass the dollar in their international transactions. This measure could, paradoxically, accelerate the de-dollarization process initiated by countries such as China and Russia. Such a development would weaken the dollar’s position as the world’s reserve currency. This scenario could potentially benefit alternative assets such as Bitcoin.
However, it would be naive to believe that a weakening dollar would automatically guarantee a rise in Bitcoin. Moreover, investors continue to favor technology stocks, whose strong fundamentals offer more predictable growth than cryptos. That said, Bitcoin’s resilience in the face of political and economic uncertainty, combined with a stable derivatives market, could open up opportunities for investors in the months ahead.
Bitcoin appears to be in a recovery phase supported by economic expectations and geopolitical factors. However, the future remains uncertain. While falling interest rates and a weakening dollar may work in crypto’s favor, competition from traditional assets and political contingencies pose significant challenges.
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