Key Takeaways:
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The rising demand for government and gold bonds emphasizes the fears of retreating, limiting Bitcoin’s ability to maintain bullish momentum.
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The relationship with equality remains high, but catalysts structures such as the S&P 500 integration can change emotions.
Bitcoin (Btc) Failed to hold Bullish Momentum this Thursday as entrepreneurs fled to the safety of government bonds after a weaker than expected US manufacture market data. This step pushed gold to a full-time high and raised doubts at the level of Bitcoin’s $ 108,000 level, with fear of recession that further leads the investor’s feelings.
However, equality -equally responded positively. Market participants have grown more confident that the US Federal Reserve will lower interest rates. In contrast, cryptocurrencies face a modified pressure as BTC briefly exchanged for under $ 110,000. Unlike digital ownership, stocks benefit more directly from lower financing costs and reduced household debt burdens, both of which can provoke consumption.
The produce in the 2-year-olds of the US dropped by 3.60%, their lowest level in four months, which signed the willingness of investors to accept the lower return in exchange for safety. The progress in the demand followed the ADP’s Thursday report showing us private payrolls added 54,000 positions in August, a sharp decline from July 106,000. The Institute for Supply Management (ISM) also reported that the overall work was contracted.
The consensus around Sept. 16-17 Federal Open Market Committee (FOMC) meeting points to a 0.25% rate cut, which brought the benchmark up to 4.25%. However, investors remain in doubt that the federal reserve can maintain such a long prevention.
The CME Fedwatch’s tool shows that entrepreneurs expect January 2026 rates to 3.75% or less refused 65% from 72% a month ago. This gauge uses Fed Futures funds to calculate the indicated probabilities leading to Fed’s January 28th meeting. The US Bureau of Labor Statistics Report will be important in guiding positioning throughout the risk of risk.
Bitcoin remains highly relevant to tech stocks
A final increase in inflationary pressure from lower capital costs may break economic growth, especially with higher import tariffs in the area. Thus, while lower interest rates can offer short-term relief, strong demand for gold and short-term bonds feature ongoing risk prevention, which can weigh over cryptocurrencies. The 60-day NASDAQ ties with Bitcoin sits at 72%, showing the two properties are more together.
What could ruin this pattern remains unsure, but some analysts feature Potential addition of the Strategy (MSTR) up to the S&P 500. According to Meryem Habibi, chief of Bitpace’s income official, the integration is “embarrassing the legitimacy of an entire class of ownership.” Such a step would force index funds and funds that were exchanged by funds (ETF) monitoring S&P 500 to buy MSTR sharing.
Related: Peter Thiel compared to Michael Saylor: Who makes the Crypto treasury smarter?
Although high demand for US government bonds, fiscal imbalances can erase confidence in domestic currency, a scenario Historical desirable For Bitcoin. Bank of America’s analysts reported that project Euro will boost against the US dollar by 2026, cited Trade frictions and weakening of institutional credentials.
In the short term, rising risk can push Bitcoin to re -evaluate the $ 108,000 mark. However, growing demand for short -term treasurys should not be viewed as a long -term bearish signal.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
