Key Takeaways:
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Bitcoin sets as investors move towards stocks after the US and China strike that could end the current trade war.
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Macroeconomic conditions are dating away from gold investment and return to stocks.
Bitcoin (Btc) reaches the highest price for more than three months to $ 105,720 on May 12, but its bullish momentum is not maintained. Interestingly, the fall of $ 102,000 came after a temporary avoidance of the US-China tariff. It left entrepreneurs surprisingly why bitcoin’s reaction was negative to what Seems positive Developments.
The 90-day Truce reduced import tariffs, and US Secretary of Treasury Scott Bessent mentioned that the agreement could be expanded, if there was a real effort and constructive dialogue. According to Yahoo Finance, the subjects under Discussion Include “money manipulation,” “steel price dumping,” and restrictions on semiconductor exports.
Part of the recent lack of Bitcoin momentum can be attributed to 24% its acquisitions over the last 30 days, with the S&P 500 futures rise 7% and gold remained flat. Investors see a little reason for further difference -Irs between Bitcoin and traditional markets, especially from 30-day relationship with the stock market remains high of 83%.
In addition, Bitcoin has now exceeded the market capitalization of both Silver and Google, making it the sixth largest goods owned worldwide.
News is that approach Got another 13,390 btc Between May 5 and May 11 also raised concerns with investors. With the Blackrock and approach together holding 1.19 million BTC, about 6% of the shifting -shifting supply, some merchants are concerned that Michael Saylor’s company is more responsible for supporting the price.
Critics, like Peter Schiff, predict that the ever -increasing average purchase price can lead to losses and force the company to sell some of its holdings to cover borrowing costs. However, this situation seems unlikely, as the company has doubled the limit of increasing $ 21 billion in stocks and another $ 21 billion debt.
Bitcoin stalls as macroeconomic events favored stocks in gold
While entrepreneurs are often focused on Bitcoin-specific events, the most likely cause for weakness near $ 105,000 is wider macroeconomic conditions. Although the pause on tariffs directly benefits the stock market, the impact on difficult owners such as Bitcoin is relatively negative. For example, gold fell 3.4% on May 12 as demand refused for safe property.
Gold usually showed an opposite touch to the US dollar index (DXY), which climbed to its highest level at 30 days on May 12. Strengthening the US dollar Signs of investment of confidence, despite a 0.3% denial of the US first-quarter gross domestic product and a 6.1% jumped on pending home sales in March compared to last month.
Related: Bitcoin Short-Term ‘Technical Sell-Off’ under $ 100k Possible early May 13 CPI Print
The lack of convincing of Bitcoin investors when prices exchanged close to $ 105,000 were at least slightly due to reduced demand for poor properties, as investors viewed the stock market as a more immediate and direct beneficiary of the US-China trade deal. Lower import duties suggest higher income and potentially improved income margins for companies.
Given the amazement -We $ 2 billion in flow In the US spot bitcoin exchange-traded funds (ETF) between May 1 and May 9, the likelihood of a price decline below $ 100,000 remains low. Stable demand for Bitcoin following a 24% monthly gain points in the institutional adoption rather than Fomo-driven retail, which is a very positive sign for the price.
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.
