• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Bitcoin Recovery Amid US Inflation and Monetary Policy

user avatar

by Giorgi Kostiuk

a year ago


  1. Recovery Supported by Economic Indicators
  2. Geopolitical Issues and the Role of the Dollar
  3. Conclusion

  4. Bitcoin, often referred to as digital gold, is going through a pivotal phase. After a significant drop in a few days, the main cryptocurrency seems to be regaining strength. However, this comeback hides deeper issues: American inflation, monetary policy, and the place of the dollar on the international stage. This Bitcoin rebound occurs in a context where economic and geopolitical pressures are redefining the contours of the global financial landscape.

    Recovery Supported by Economic Indicators

    After a notable drop between September 5 and 7, 2024, Bitcoin regained a key resistance level around $57,225. This Bitcoin rebound is supported by favorable macroeconomic factors that encourage optimism. The improvement in global economic prospects, coupled with the forecast of a slowdown in U.S. inflation, paves the way for greater market liquidity. Investors anticipate a less aggressive Federal Reserve on rate hikes, thus facilitating access to capital and encouraging investments in high-yield assets like Bitcoin.

    Geopolitical Issues and the Role of the Dollar

    While economic expectations play a decisive role in the recovery of Bitcoin, geopolitical tensions should not be underestimated. With the U.S. presidential elections in sight, the future of Bitcoin could be influenced by major political decisions. Former President Donald Trump recently proposed a 100% tax on imports from countries attempting to bypass the dollar in their international transactions. This measure could, paradoxically, accelerate the process of dedollarization initiated by countries like China and Russia, weakening the dollar’s position as the world’s reserve currency and potentially benefiting alternative assets like Bitcoin.

    However, it would be naive to believe that the weakening of the dollar would automatically guarantee an increase in Bitcoin. Furthermore, investors continue to favor tech stocks, whose strong fundamentals offer more predictable growth than cryptocurrencies. Nonetheless, Bitcoin’s resilience to political and economic uncertainties, combined with a stable derivatives market, could open up opportunities for investors in the coming months.

    Conclusion

    Bitcoin appears to be in a recovery phase supported by economic expectations and geopolitical factors. However, the future remains uncertain. While a drop in interest rates and the weakening of the dollar may play in favor of cryptocurrencies, competition from traditional assets and political uncertainties pose significant challenges.

    Bitcoin continues to adapt to changes in the global economic and geopolitical context. The coming months are expected to be crucial for the further development of the cryptocurrency market.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Ethereum Discussions Focus on Network Activity and Scaling

chest

Ethereum is trending due to ongoing discussions about its price behavior and network developments.

user avatarSon Min-ho

Bitcoin Remains the Anchor of Market Attention

chest

Despite the surge in memecoin chatter, Bitcoin continues to command substantial mindshare.

user avatarAyman Ben Youssef

Crypto Social Hype Surges as PEPE, Bitcoin, and Solana Dominate Weekend Trends

chest

Crypto social media activity is heating up as the weekend begins, with a mix of memecoins and major assets capturing the highest levels of attention across platforms.

user avatarZainab Kamara

Privacy-Centric Applications Ready for Deployment on Midnight

chest

Privacy-Centric Applications Ready for Deployment on Midnight

user avatarTando Nkube

Cyberscope Leads in Smart Contract Audits Amid Growing Demand for Blockchain Security

chest

Cyberscope has conducted over 2,700 smart contract audits, addressing unique risks in decentralized finance as demand for security validation rises.

user avatarKofi Adjeman

YoungHoon Kim Launches New Cryptocurrency Project on XRP Ledger

chest

YoungHoon Kim announces a new cryptocurrency project on the XRP Ledger aimed at supporting decentralized governance and enhancing on-chain participation.

user avatarNguyen Van Long

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.