Bitcoin break price rebound before the key level is hit – here’s why

Bitcoin (Btc) earned 6.8% between March 5 and March 6, briefly reclaiming $ 92,000. However, the trend was reversed after the S&P 500 fell 1.3%, which was a warning from a warning from the Philadelphia Federal Reserve President Patrick Harker about the US economy. Other factors also maintain bitcoin prices below $ 95,000, such as increasing Ukraine tensions and uncertainty in potential US digital asset strategic reserves.

Philadelphia Fed President Harker said there is a growing evidence that the consumer sector is “under stress,” especially for low -income groups, according to yahoofinance. Harker supported a “pragmatist” approach for the US central bank “in this environment of uncertainty” while added that price pressure “continued to retreat.” Harker’s comments suggest support for a larger Fed reduction rate, but they do not indicate energy for the economy.

Entrepreneurs add positions equal to cash and cash when they are afraid of an economic contraction, regardless of the causes are socio-political, such as Ukraine conflict, or centered on the outlook for the artificial intelligence sector. To break the Bitcoin above $ 95,000, a scenario is required of reduced uncertainty, although the outcome is higher inflation, which is inherently positive for deficiencies of properties-is giving the effect on income instruments.

The rising tension of the war and fear of a backward, which is being held by the tariff dispute, pushed the S&P 500 Volatility Index (VIX) to its highest level at 11 weeks. This indicates that investors are more dangerous-averse than before. Historically, under conditions, Bitcoin is poorly performed, at least in the days immediately following local peaks to the VIX indicator.

Currently, at 24, the S&P 500 volatility index is significantly higher than its level of 16 two weeks ago and is now closer to its highest point in 7 months. However, a likely consequence of worsening economic conditions is an expansion of the financial base, as central banks are forced to stimulate their economies.

On March 6, China indicated the existence of “more room to act on fiscal policy among domestic and external uncertainty,” while the European Central Bank said the financial policy becomes “less restrictive.”

History has repeatedly shown that an increase in currency circulation is highly desirable for Bitcoin, whether it is viewed as a risk-on asset or a fence instrument. Lyn Alden, a macroeconomics analyst, mentioned Bitcoin moves in the “direction of global liquidity 83% of the time in any given 12-month period, which is higher than any other major property.”

However, Lyn Alden’s research features that Bitcoin is not immune to short-term volatility driven by “idiosyncratic events or internal dynamics in the market,” as reflected in speculation surrounding US digital property Strategic Reserve. For Bitcoin to recover its bullish momentum, investors expect a clear resolution from the upcoming Crypto summit Organized by the Trump administration.

Related: How can Buklele still get Bitcoin after the IMF Loan Agreement?

If Trump’s plans involved only stopping the sales of the current government’s Bitcoin handling from administrative seizures, for example, it would probably be interpreted by negative entrepreneurs. Although it is clear that any Bitcoin purchases depend on the approval of Congress, it will still allow investors to re -evaluate the potential reversal, as it provides clarity on Trump’s expectations and plans.

In addition, a positive outcome from the March 7 Crypto Summit could encourage other countries and listed companies to explore Bitcoin as a Reserve assetPotential way of placing a long way for a long bull running for $ 95,000 and more.

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.