Why is Bitcoin holding strong amid economic uncertainty?
Despite concerns about a possible global recession, the Bitcoin price has shown resilience, holding near $110,000. What factors are behind this performance?
🔹 Rising Institutional Interest
More and more companies and institutional funds are acquiring Bitcoin, considering it not only as an investment asset, but also as a form of protection against inflation and financial instability.
🔹 Monetary Policy on Pause
The market currently estimates a 41% probability that the US Federal Reserve will keep interest rates unchanged until September. This is a significant change compared to the 2% probability estimated just a month ago. This expectation sustains demand for assets like Bitcoin.
🔹 Relationship with the Traditional Market
Although Bitcoin has reached a market capitalization of $2.2 trillion—surpassing Google and Meta—its performance is still tied to that of traditional markets. Its correlation with the S&P 500 has been over 70% in recent weeks. This means that if stocks fall, Bitcoin may also fall.
Business and Political Impact
Trump Media's announcement of its intention to buy Bitcoin after a $2.5 billion financing round has reinforced its image as a strategic asset. This trend points to Bitcoin's use beyond speculation, especially among major corporate players.
🔹 Economic Outlook
The 6.3% drop in US durable goods orders during April may be a sign of a slowdown. However, weaker corporate results could accelerate future interest rate cuts, which would benefit both the stock market and Bitcoin.
