Why is Bitcoin holding strong amid economic uncertainty?
Despite concerns about a possible global recession, the Bitcoin price has shown resilience, holding near $110,000. What factors are behind this performance?
🔹 Rising Institutional Interest
More and more companies and institutional funds are acquiring Bitcoin, considering it not only as an investment asset, but also as a form of protection against inflation and financial instability.
🔹 Monetary Policy on Pause
The market currently estimates a 41% probability that the US Federal Reserve will keep interest rates unchanged until September. This is a significant change compared to the 2% probability estimated just a month ago. This expectation sustains demand for assets like Bitcoin.
🔹 Relationship with the Traditional Market
Although Bitcoin has reached a market capitalization of $2.2 trillion—surpassing Google and Meta—its performance is still tied to that of traditional markets. Its correlation with the S&P 500 has been over 70% in recent weeks. This means that if stocks fall, Bitcoin may also fall.
Business and Political Impact
Trump Media's announcement of its intention to buy Bitcoin after a $2.5 billion financing round has reinforced its image as a strategic asset. This trend points to Bitcoin's use beyond speculation, especially among major corporate players.
🔹 Economic Outlook
The 6.3% drop in US durable goods orders during April may be a sign of a slowdown. However, weaker corporate results could accelerate future interest rate cuts, which would benefit both the stock market and Bitcoin.
Vice President JD Vance says "we don't believe Bitcoin will compete with the US dollar."
"Bitcoin will become a strategically important asset for the United States."
BREAKING: Michael Saylor says on-chain proof-of-reserves is a bad idea.
“It actually dilutes the security of the issuer, custodians, exchanges, and investors. It's not a good idea, it's a bad idea.”
