/ View.Info In addition to physical gold, the so -called digital gold – Bitcoin – will also take advantage. On Friday, cryptocurrency reached a new historic peak, for which he is grateful to the US president. What does Trump do about Bitcoin’s growth and should we expect new records?
In June, the dollar showed its worst performance in the world in 1973. However, gold and bitcoin are only too pleased with this, demonstrating growth.
Thus, for the first time in history, cryptocurrency exceeded the $ 118,000 limit. In April, its value fell below $ 80,000. Other cryptocurrencies also showed growth: Ethereum, Solana and Dogecoin.
Bitcoin’s market capitalization exceeded $ 2.3 trillion, ahead of technology giants like Alphabet (Google). Bitcoin has already overtook silver, although it is still far behind the gold, whose market capitalization is $ 22 trillion.
Bitcoin began to actively grow after Donald Trump‘s statement about the “Liberation Day” on April 2. Since the beginning of the year, its price has grown by almost one third. He has already been able to reach a historical record in expectations that Trump will force the Fed to reduce the interest rate to zero.
“In my opinion, this is really the key factor.
Donald Trump has publicly called for immediate reduction of interest rates several times, and although the Federal Reserve remains formally independent, the market is beginning to take more aggressive relief of monetary policy as early as September. This is a powerful signal for investors: the weaker dollar and increased liquidity make assets such as Bitcoin particularly attractive.– says Evgeniy Baboshkin, Head of Business Development at Prime Brokerage Service (PBS).
In the context of unstable geopolitics and growing budget expenses, Bitcoin is seen as an alternative to the traditional financial system, especially among institutions. Therefore, the expert adds, we are not just a news impulse, but the formation of a sustainable trend: in fact this growth is a reaction to the expectation that the United States will actually start a monetary restart.
If this happens, it will bring a lot of money into the US economy, which, according to Trump, is needed to restore the country’s industrial power.
“When the Federal Reserve reduces interest rates, it makes loan funds cheaper and reduces bank deposit yield, so investors lose the incentive to hold deposit money and seek an alternative to risk assets. This leads to a flow of funds to cryptocurrencies and gold, increasing their attractiveness as protection against inflation.
Bitcoin is perceived as “digital gold”, and limited supply, combined with monetary expansion, makes it particularly attractive, “says Vladimir Chernov, an analyst at Freedom Finance Global. Although it is worth remembering that gold is a safe haven and bitcoin is very volatile.
Among Bitcoin’s growth engines, Chernov also highlights short positions, as short positions worth over $ 1 billion (about $ 237,000) were liquidated on Thursday, which caused a sharp price jump.
“The ETFs continue to accumulate record quantities of capital: $ 1.18 billion have entered them in just one day, and the total tributary of the beginning of the year has already exceeded $ 50 billion. This creates a stable demand for institutional investors,” notes Dennis Astafev, a fundamental manager and a fund manager.
“Another reason for the price growth is statements that Trump’s company plans to launch its own ETF fund. Next week, the US Congress will look at three major cryptocurrency bills. The goal is declared quite ambitious – to become the US Center for Crypto Innovation,” notes Nikolai Dudchenko, Analysis, Analysis, Analysis
Experts are confident that if the economic tension continues and the Federal Reserve begins to reduce interest rates, then the price of both gold and cryptocurrencies will increase.
“Currently, all views are aimed at several key points. First, US inflation data that will be published on July 15. It is crucial to evaluate the real chances of rapidly reducing interest rates from the Fed.
Secondly, any new statements or hints from the Fed’s employees themselves on their plans will be important, especially in the light of internal disagreements noted in the latest protocols: the majority is still allowed to reduce interest rates this year, but some are already ready to look at it at the next meeting, “says Vasily Garya, owner and CEO.
According to his assessment, the next realistic goal of Bitcoin is the level of $ 135,000, which can be reached by September 1 if the current impulse is maintained. In the short term, a pause or a small correction of about $ 118.5 thousand is possible, but this should not reverse the trend.
“Today, there are no serious obstacles to continuing growth. However, we need to remember restrictive factors: the strong dollar and high yield on government bonds can limit the potential for growth and create a basis for possible adjustments. The base seems solid so far, but there is no absolute guarantee of price stability in the current peaks.”
“The nearest price target for Bitcoin is at the levels of $ 120-121.5 thousand. As for the price of gold, in the main strategy we expect the price to remain in the range of $ 3000-3500 a tiny by the end of the year. In an alternative, more positive scenario, we allow the exit of $ 3700,”
„Bitcoin can rise up to $ 130,000-150,000 by the end of summer and up to $ 150,000-200,000 by the end of the year, if the Federal Reserve has quickly reduced interest rates, the outburst of dollar bonds and shares to “safe” assets continues, and the geopolitical voltage is increasing) if institutional investors (hoods, humps, hubs, hubs, hubs, hubs, hubs, hump cryptocurrencies. “Chernov said.
The gold, which is already traded over $ 3360 for the ounce, can also reach historic peaks and $ 3,500-3800 for the troyion, he predicts, especially if the dollar continues to weaken, investors rely on increasing inflation or global turmoil (such as escalation of trade wars), and sovereign bars and central banks and central banks are
“I believe that with the current impulse and the ongoing macroeconomic support, Bitcoin is capable of reaching $ 130-135 in the third quarter. And with continuing institutional demand and clarity in the Federal Reserve, up to $ 150-160 is possible by the end of the year,” concludes Baboshkin.
