key takeaways:
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Bitcoin may be higher despite the demands of institutional investor demand and corporate adoption.
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Investors believe that the US Federal Reserve will reverse the price of bitcoin.
Stock markets around the world positively responded to the temporary suspension of import tariffs between the United States and the European Union, with an increase of S&P 500 1.5% on 27 May. However, concern about a global economic recession is made of bitcoin.BTC) Reverse, especially since baseline US import rates have been lifted to most areas.
Bitcoin antifragile remains and ready to perform better in indefinite times
Given the growing investor uncertainty about economic conditions, Hovering around the level of bitcoin $ 110,000 has surprised investors as it consolves the top -6 position as one as one Global tradition By market capitalization. Investors now ask whether bitcoin is getting antifragile or if a drop below $ 100,000 is unavoidable in a recession environment.
Traders have currently estimated 41% probability that the US Federal Reserve (Fed) will maintain interest rates through September, growing by just 2% a month ago.
Generally, a high cost for capital is a recession for risk-per property like bitcoin. However, in this context, it also suggests a possible liquidity injection from the fed, in view of adverse American fiscal approachWhere government spending is more than revenue capacity.
US President Donald Trump has called for low interest rates, but Fed Chair Jerome Powell remains alert due to a strong labor market and increasing inflation pressure, whether inspired by tariffs or easy credit situations. This stress helps explain why S&P 500 has fought to re -to re -resurrection of its February 6,147 and why bitcoin has been limited to the reverse.
The current market of bitcoin $ 2.2 trillion is now more than Google and Meta, which partially explains $ 112,000 resistance level. Nevertheless, it would be wrong to suggest that bitcoin has disintegrated from traditional markets; Its 30-day correlation with S&P 500 has been above 70% in the last four weeks. For example, if equity enters a bear market, bitcoin is also likely to withstand the negative side.
Companies are currently reporting earnings for the first quarter, a period that occurs before the growth of trade war. As a result, it may take longer to reflect complete negative effects in the stock market, even macroeconomic indicators show signs of contractions. In April, US sustainable goods orders declined by 6.3%, reported on 27 May, the first sign of a weak economy.
However, even though corporate income for the first quarter is less than expectations, it does not mean that the S&P500 will cause considerable damage. In fact, disappointing results can open the door for rapid interest rate cuts, which benefit companies by reducing financing costs and potentially stimulating consumer demand.
Bitcoin’s appeal increases as a strategic property, Trump Media joins the party
After the announcement of Trump Media and Technology Group, the risk profile of bitcoin has improved Plan to get BTC After a mixture of $ 2.5 billion of loan and equity financing. According to Reuters, Trump Media CEO Dewin Nuns said, “We see bitcoins as a top means of financial freedom.” This development suggests that the trajectory of bitcoin towards $ 112,000 is not completely associated with comprehensive economic development.
Connected: Bitcoin is at stalls at $ 110K, but institutional investors continue BTC
The growing institutional and corporate interest in bitcoin adds a new dimension to its market behavior. While the correconomic trends and correlations with traditional assets still matter, bitcoin is growing rapidly Created as a strategic property With utility beyond speculation. Such as, its performance can at least partially, from equities, especially as adoptions between influential companies and investors, partially.
While the stock market can be sensitive to the surprise of macro data and earnings, bitcoin’s reverse capacity appears to relax on its emerging role as a rescue, institutional status and a defense against systemic financial risk.
This article is for general information purposes and is not intention and should not be taken as legal or investment advice. The ideas, ideas and opinions expressed here are alone of the author and not necessarily reflected or represented the ideas and ideas of the components.
