Key results:

• The demand of institutional investors and corporate adoption can push bitcoins higher despite the fears of the recession.

• The conviction of investors that the US Federal Reserve will maintain the rates, promotes the positive price of bitcoins.

Stock market markets around the world have positively reacted to the fleeting suspension of import tariffs between the United States and the European Union, with S&P 500 increased by 1.5% on May 27. However, concerns about global economic recession persist, limiting the Bitcoin Mountain (BTC), especially since the basic import rates in the US have been raised for most regions.

Bitcoin remains opposed and ready to surpass in uncertain times

Considering the growing uncertainty of investors regarding economic conditions, bitcoins floating at USD 110,000 surprised investors because it consolidates the first 6 items as a global commercial asset component by market capitalization. Investors are now asking whether Bitcoin is becoming historic or whether a decrease below 100,000 USD is inevitable in the recession environment.

Traders currently estimate a 41% chance that the US Federal Reserve (FED) will maintain interest rates until September, which is a keen raise compared to just 2% a month ago.

Usually, the higher cost of capital is bears for risk assets such as Bitcoin. However, in this context, he also suggests potential liquidity injections from the FED, taking into account adverse fiscal perspectives in the US, in which government expenditure exceeds income capacity.

US President Donald Trump called for lower interest rates, but Fed Chairman Jerome Powell remains cautious due to the mighty labor market and growing pressure on inflation, regardless of whether it is tariffs or straightforward credit conditions. This tension helps to explain why the S&P 500 fought to regain its highest level 6147 and why Bitcoin is also circumscribed.

The current Bitcoin market capitalization of $ 2.2 trillion currently exceeds Google and Meta, which partly explains the level of resistance of USD 112,000. Despite this, it would be inexact that Bitcoin has separated from customary markets; Its 30-day correlation with S&P 500 remained above 70% in the last four weeks. Therefore, if the actions enter the bears, Bitcoin will probably also stand.

Companies currently report earnings in the first quarter, a period that precedes the escalation of the trade war. As a result, the stock market may take longer to reflect the full negative impact, even if macroeconomic indicators have signs of contraction. By a 6.3% decrease in orders for fixed goods in the US in April, informed on May 27, may be the first signal of weakening the economy.

However, even if corporate earnings in the first quarter do not meet expectations, this does not automatically mean that the S&P 500 will suffer significantly. In fact, disappointing results can open the door to faster interest rate cuts, which usually benefit to companies by reducing financing costs and potentially stimulating consumer demand.

The cancellation of Bitcoin as strategic assets is growing, Trump Media joins the party

It seems that Bitcoin’s risk profile has improved after Trump Media and Technology Group announced plans to buy BTC after the merger of debt and financing capital worth $ 2.5 billion. “According to Reuters, we consider Bitcoins as an apex instrument of financial freedom,” said Devin Nunes, general director of Trump Media. This development suggests that Bitcoin’s trajectory is not associated only with a broader economic growth compared to USD 112,000.

Related: Bitcoin stops for 110,000 USD, but institutional investors are still consuming BTC

The growing institutional and corporate interest in Bitcoins adds a recent dimension of its market behavior. While macroeconomic trends and correlations with customary assets still matter, bitcoins are increasingly put as a strategic resource with usability going beyond speculation. Therefore, its results can, at least partly, from the results of the campaign, especially since adoption expands among influential companies and investors.

While the stock market can remain sensitive to macro and earnings surprises, the potential of Bitcoin growth seems to be based on confusion of monetary policy, institutional positioning and its recent role as security against system financial risk.

This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.