Bitcoin has once again demonstrated growth, surpassing the $97,000 mark, despite declining demand from institutional and individual investors. This rise occurred amid global economic instability and trade conflicts.
Bitcoin's New Leap
Bitcoin experienced significant volatility, first dropping below $95,000 and then recovering above $97,000. A trigger for this was the announcement of new Chinese taxes on American energy imports, which temporarily caused the cryptocurrency to fall. However, following Donald Trump's countermeasures, such as imposing a 25% tax on steel and aluminum, bitcoin regained its position.
Investor Challenges Amid Economic Uncertainty
The institutional interest in bitcoin is waning not due to a lack of interest in the cryptocurrency itself but due to a complex macroeconomic environment. Certain events, such as the drop in 10-year US Treasury yields to 4.50%, and Moody's warnings of a potential downgrade of the World Bank's credit rating, increase market caution. In this context, many investors favor safe-haven assets, reducing their exposure to riskier investments, including bitcoin.
Regulatory Influence and Cryptocurrency Prospects
Despite the declining demand from institutional investors, bitcoin remains central to numerous regulatory initiatives in the US. Several states are considering building BTC reserves, which may reinforce bitcoin's role as a strategic reserve. A potential rise beyond $100,000 should not be dismissed, especially if the regulatory and macroeconomic environment becomes more favorable.
Bitcoin continues to attract attention amid economic instability, despite declining institutional interest. Its role as a strategic reserve may strengthen with further regulatory development.
