Bitcoin (BTC) is facing significant resistance at the $100,000 mark due to macroeconomic factors and Federal Reserve rate expectations, according to Bloomberg.
Federal Reserve Rate Expectations
The Federal Reserve's cautious stance on interest rates continues to influence risk assets, including Bitcoin. Rate hikes or delayed cuts could exacerbate volatility, making it harder for BTC to sustain levels above $100,000.
Rising Competition from Gold
Gold, as a traditional safe-haven asset, has been gaining traction among investors during periods of economic uncertainty. Its recent outperformance highlights its appeal, presenting a challenge to Bitcoin’s positioning as 'digital gold'.
Correlation with the S&P 500
Bitcoin’s correlation with the S&P 500 remains elevated, tying its performance to broader stock market trends. A weak equities market could further hinder Bitcoin’s ability to break through the $100,000 resistance.
The $100,000 resistance represents a crucial psychological and technical barrier for Bitcoin, with broader macroeconomic factors and competition from gold complicating its upward trajectory. The interplay between Federal Reserve policies and capital flows into ETFs will be key in determining Bitcoin’s ability to sustain new highs.
