Bitcoin shows high sensitivity to macroeconomic factors, especially to economic and policy changes in the US. Despite this, it remains resilient and outperforms many US equities.
BTC and Macroeconomic Changes
Bitfinex reported that bitcoin is now behaving like a traditional financial asset, reacting to global liquidity flows, especially in light of US economic developments and policies. In recent months, inflation and Fed rate policies have significantly affected bitcoin's price movement. Over the last four days, President Trump's announcements have increased global market uncertainty, leading to a decline in bitcoin's price. On Monday, bitcoin reached an intraday low of $91,657.
Positive Long-Term Outlook
Since President Trump's inauguration, bitcoin has continued to show a downward trend. BTC formed a double top at the $108,000 level and has been trading in a 15% range since mid-November. Bitfinex analysts noted that such 15-20% ranges often resolve in either an upward or downward direction within 80-90 days. This means BTC will experience a decisive price move in the coming weeks under the influence of macroeconomic developments. Bitfinex predicts BTC faces further downside unless legacy assets recover. Analysts remain confident in bitcoin's long-term trajectory, describing it as compelling.
Bitcoin continues to show sensitivity to US macroeconomic changes but remains resilient and demonstrates a positive long-term outlook despite global market uncertainties.
