Why The Bitcoin Price Could Be Building An Uptrend
07 November 2022 - 11:00PM
NEWSBTC
The Bitcoin price is steadily trading above critical support levels
and might extend its bullish trend in the coming days. The
cryptocurrency positively reacted to the current macroeconomic
conditions despite the U.S. Federal Reserve (Fed) promising to keep
hiking interest rates. Related Reading: Holding FTT And BNB?
It Might Be Time For You To Get Out At the time of writing, the
Bitcoin price trades at $20,700 with a 3% loss over today’s trading
session and sideways movement over the previous week. This period
has been profitable for digital assets against traditional assets,
such as equities, for the first time. Reasons Why The Bitcoin
Price Will Stay Bullish Investment firm Cumberland believes the
Bitcoin price is building the foundation for a more significant
uptrend. The firm claims this bullish price action will be
supported by macroeconomic factors and a “growing drumbeat of
progress in digital asset adoption.” Cumberland believes the U.S.
dollar, as measured by the DXY Index, shows weakness on the first
of these factors. The currency has been rallying over the past
months. This bullish price action negatively impacted the Bitcoin
price and the value of other assets, including equities and
gold. A crash in the DXY Index will provide Bitcoin with some
room to run into Q4 2022. Over the past two years, the
cryptocurrency saw a new all-time high in November and December.
This period stands as one of the most bullish for digital assets in
its history. Cumberland added the following on the DXY’s
price action, and the reason for its weakness: This rally
seems to have topped out, likely the result of expectations that
the Fed reverse course by mid-2023. In other words, the 5.5%
market-implied terminal rate is a lot scarier when short term rates
are locked 0% than when they’re hovering around 4%. The current
status quo will persist unless an unexpected macro-events, such as
a higher-than-expected inflation print. Other sources of
uncertainty, the Russian-Ukraine war issues with supply chains,
reached a “state of choppy equilibrium.” U.S. Politics Can Favor
Crypto In the short term, the is growing uncertainty around U.S.
politics. Tomorrow, the country will elect a new Congress. The
results of this election will have significant consequences for the
crypto market and the global economy. In that sense, the Bitcoin
price is more likely to trend higher. Related Reading: Hive
Blockchain Bucks The Bearish Trend By Holding $68 Million In
Bitcoin A Republican control Congress could favor the Bitcoin price
and digital assets in the crypto industry. In contrast, Democrats
are perceived as hostile or less inclined to legislate in favor of
the nascent industry. On a possible Republican victory, Cumberland
wrote: In the event that Republicans do manage to take back control
of the legislative branch of government, it would seem unlikely
that they usher in an era of fiscal austerity. Instead, we should
expect a lean towards lower taxes, higher stimulus, and easier
regulation. Similarly, we should expect a less adversarial
environment in Washington for crypto (…).
Mina (COIN:MINAUSD)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Mina (COIN:MINAUSD)
Historical Stock Chart
Von Apr 2023 bis Apr 2024