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Bitcoin (BTC) increased by 3.5% between June 7 and June 9, approaching the result of USD 108,500. Despite this recent growth, professional traders remain particularly careful, which was reflected in BTC derivatives. Wider macroeconomic tensions persist, and Bitcoin still shows a powerful correlation with the stock exchange, limiting its compact -term growth potential.
Some analysts predict that Bitcoin can collect up to USD 150,000, because the US government is approaching an boost in $ 4 trillion to the debt ceiling. However, the Futures market data suggest compact -term fluctuations, probably caused by adverse macroeconomic signals and incorrect reading of a potential shock of Bitcoin supply.
From June 6, the Bitcoins bonuses floated near 5% of the output typical of neutral markets. The last boost in prices must still inspire significant trust among traders. Despite this, it would be incorrect that the sentiment is completely negative, especially when Bitcoin is currently trading only 3% below 111,965 USD of all time on May 22.
The last price movement was not powered by excessive speculation, an indicator of a vigorous market. However, if the fears of the recession persist, Bitcoin is unlikely to keep levels above USD 110,000, taking into account its further correlation with classic capital markets.
Currently, Bitcoin correlation with S&P 500 is 82%, which means that two assets moved in similar directions. This trend has lasted over the last four weeks. Although the correlation has fluctuated in the last nine months, investors are largely treating bitcoins as risk assets, not a reliable hedge.
Bitcoin could fight wider economic winds
Investors’ fears were strengthened by previous cases when the US trading war intensified, negatively affecting almost every class of assets, including actions, oil and bitcoins. Despite this, Bitcoin was designed exactly for a period of financial uncertainty. If trust in the fiscal stability of the US government worsens, risk perception can change the benefit of Bitcoin.
The Bitcoin margin ratio in OKX shows long prevailing in shorts 4 times. Historically, excessive trust has exceeded this ratio over 20 times, while levels below 5 times favorable long are perceived as bear.
However, none of these indicators suggest that immense investors or market manufacturers are preparing for Bitcoin price failures.
Related: The strategy adds 1045 bitcoins for USD 110 million in the latest purchase
If the investor’s trust in the US’s ability to manage the growing debt is still weakening, there is a potential for capital to leave government bonds. Unlike the S&P 500, which has a valuation of $ 50 trillion, i.e. gold at 22.5 trillion dollars, Bitcoin can exceed USD 150,000 even by capturing a miniature part of these outflows.
In a compact period, as long as the US dollar remains a reserve currency in the world, the price of Bitcoin remains susceptible to inheritance pressure, especially in the case of confirmation of the recession. Therefore, the dominant concerns about the global trade war and the persistent impact of high interest rates will probably limit the nearest Bitcoin position.
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.
