© Reuters
Investing.com – Like most assets, it fell on Tuesday as a better-than-expected US index prompted expectations of a Fed rate cut.
In fact, the {} interest rate gauge now indicates almost no odds of a rate cut at the FOMC meeting in March, and less than 50% at the next meeting in May.
As a result, the dollar rose, stock markets fell, and the technology index ended the session with a significant decline of 1.8%, while the index recorded its worst decline since March.
However, Bitcoin and the overall cryptocurrency market have shown surprising resistance in the face of this bad news, with {BTC/USD} falling just 0.8% over the past 24 hours, and maintaining a 15.7% gain over the 24-hour period. last hour. For one week.
Why didn’t Bitcoin retreat in the face of the unpleasant surprise of the US CPI?
However, this good performance can be explained by the fact that Bitcoin is currently benefiting from other bullish factors that protect it from a very strong decline. In particular, spot Bitcoin ETFs that were approved in the USA just over a month ago continue to be a huge success with massive inflows of funds.
In this regard, analysts from Alliance Bernstein highlighted in a note published on Monday that these ETFs ideally position Bitcoin for its next rally.
The analysts also wrote: “We believe Bitcoin’s best days are ahead, and the ETF-based Bitcoin market is poised for what we expect to be a bullish red flag.”
They did confirm that the market integrated new ETFs quickly as soon as they were approved, but had not yet taken into account the level of ETF inflow or supply tightening that would result from a Bitcoin halving.
New historic numbers for BTC are on the horizon this year thanks to the halving
Let’s remember that the next Bitcoin halving will take place in April. Halvings are technical events scheduled approximately every 4 years, and consist of halving the reward for Bitcoin miners.
As a result, supply growth slows down, which mechanically affects the price upwards, a phenomenon verified during all previous halvings.
In the two years before and after Bitcoin’s debut, in 2012, the price rose about 30,000 percent, Mr. Rhodes says. In 2016, the increase was approximately 800% over the biennium. For the last halving, which occurred in 2020, investors recorded gains of 700%.
However, with Bitcoin now more accessible thanks to ETFs, everything indicates that the next halving will also allow Bitcoin to cross a major milestone, achieving new historical records.
Finally, from a graphical point of view, we note that the key psychological threshold area of 50,000 tested on Monday and Tuesday remains a major obstacle, while on the downside, $49,000 and $48,000 are the first potential supports.
***
- Pro Pix: Trading lists created through a combination of artificial intelligence and human expertise with proven and guaranteed performance.
- Pro Tips: Easy-to-understand information to simplify large amounts of complex financial data in just a few words
- Fair value and financial safety: two indicators based on financial data that allow you to instantly know the potential and risks of each action and more..You can learn more about InvestingPro tool from here
2024-02-14 11:13:00
#Bitcoin #affected #economy #Feds #decisions #Investing.com
