The drop of 7% Bitcoin (BTC) experienced the price drop from $ 88,060 on March 26 to $ 82,036 on March 29 and led $ 158 million long liquidations. This drop was particularly worrying for the bulls, while gold had reached a record at the same time, undergoing the “digital gold” story of Bitcoin. However, many experts maintain that a Bitcoin rally is imminent because several governments take action to avoid an economic crisis.
The current world trade war and discounts of spending by the United States government are considered temporary setbacks. An apparent silver lining is the expectation that additional liquidity should flow on the markets, which could stimulate risky assets. Analysts believe that Bitcoin is well positioned to benefit from this broader macroeconomic change.
Source: Mihaimihale
Let us take, for example, Mihaimihale, a user of the social platform X which argued that lower tax cuts and interest rates are necessary to “launch” the economy, especially since the growth of the previous year was “supported” by public spending, which turned out to be unbearable.
The less favorable macroeconomic environment pushed gold to a record summit of $ 3,087 on March 28, while the US dollar was weakened at a basket of foreign currencies, the index of 104 from 107.40 a month earlier.
In addition, the 93 million dollars in net outputs of Bitcoin Exchange Funds (ETF) Spot of March 28 also weighed the feeling, because traders have recognized that even institutional investors are likely to sell in the midst of recession risks.
American inflation slows in the midst of fears of the economic recession
The market is currently awarding a 50% probability that the American federal reserve will reduce interest rates to 4% or less by July 30, against 46% a month earlier, according to the Fedwatch CME tool.
Implicit rates for Fed funds on July 30. Source: CME Fedwatch
The cryptography market is currently in a “withdrawal phase”, according to Alexandre Vasarhelyi, founding partner of B2V Crypto. Vasarhelyi noted that the recent major announcements, such as the executive decree of the Strategic Bitcoin Reserve of the United States, the progress in the metric that most count: adoption.
Vasarhelyi said that the tokenization of real assets (RWA) is a promising trend, but he thinks that his impact remains limited. “Billion Dollar Billion Fund of BlackRock is a step forward, but it is insignificant compared to the bond market of $ 100 billions.”
Vasarhelyi added:
“Whether the Bitcoin floor is $ 77,000 or $ 65,000 has little; History is growth at an early stage. ”
Gold cutting of shares, bonds and bitcoin
The experienced traders consider a stock market correction of 10% as a routine. However, some predict a drop in “political uncertainty” at the beginning of April, which would reduce the probability of recession or bears market.
Source: Warrenpies
Warren Pies, founder of 3F Research, expects the American administration to soften its position on the prices, which could stabilize the feeling of investors. This change can help the S&P 500 above its lower March 13 of 5,505. However, market volatility remains a factor as economic conditions evolve.
In relation: The price of bitcoin falls towards the low -end, but the data show that the whales are unleashed at the moment ”
For some, the fact that gold has gathered from the stock market while Bitcoin succumbed to “extreme fear” is proof that the digital gold thesis was wrong. However, more experienced investors, including Vasarelyi, argue that Bitcoin’s low performance reflects its adoption at the start of the stage rather than a failure of its fundamental qualities.
Vasarhelyi said,
“Legislative changes open the way to user -friendly products, exchanging part of the flexibility of the crypto for the consumer call. My plug is adoption to accelerate, but 2025 remains a basic year, not a tilting point. ”
Analysts consider the recent Bitcoin correction as a reaction to recession fears and the temporary tariff war. However, they expect these factors to trigger expansionist measures of central banks, ultimately creating a favorable environment for risky assets, including bitcoin.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
