With a $300 billion increase in market capitalisation, the cryptocurrency markets are undergoing a reversal as Bitcoin has broken through significant resistance levels and continues to rise. With a 10% increase, the price of Bitcoin surpassed $90,000, a level last seen in early March 2021. A notable recovery occurred when Bitcoin reached $95,000 on Monday afternoon.
Bitcoin’s comeback occurs amid greater economic uncertainty, including potential US-China tariff hikes, lingering tensions over President Trump’s trade policy, and speculation about the future of Federal Reserve Chairman Jerome Powell. Bitcoin’s recent rise suggests a disconnection from its traditional association with US markets, particularly tech companies, despite ongoing pressure in these sectors. There is a growing correlation between Bitcoin and gold, a traditional safe-haven asset, which may suggest that Bitcoin is becoming a more significant hedge against economic volatility.
Bitcoin has performed well despite persistent economic uncertainty, which includes concerns about potential changes in the Federal Reserve’s leadership and geopolitical tensions between the US and China. Bitcoin has remained resilient in the face of pressure on traditional markets, which may indicate a shift in the way institutional and individual investors perceive the asset. Like gold, it’s evident that Bitcoin is becoming a viable safe-haven asset, according to Simon Peters, eToro’s Crypto Analyst.
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