Bitcoin price can gather even with the emergence of the World Trade War – that is why

Crypting and stock traders were hoping to obtain a solution at the last minute that would prevent the United States from 104 % of the tariffs on Chinese goods entering the United States, but at a press conference, the White House confirmed that customs duties begin on April 9.

As a result, the S&P 500 is closed on April 8, a 1.6 % loss, reflecting 4 % previous gains. This recession has left merchants wondering whether the bitcoin coin is (BTCIt can regain its momentum ascending amid the bad economic conditions.

American debt issues remain escalating, which paves the way for bitcoin gains

Between April 2 and April 7, the S&P 500 index decreased by 14.7 %, causing panic among bitcoin holders and forcing a re -test of 75,000 dollars – the lowest level in more than five months.

During the appearance of Israeli Prime Minister Benjamin Netanyahu on April 7, President Trump reported that his goal was to “reset the table” on trade. He added, “There can be a permanent tariff, and there may also be negotiations because there are things that we need beyond the definitions.” Amid this suspicionThe subscriptions were delayed and integration, while supported loan deals and bond sales were marginalized, according to Yahoo’s funding.

It becomes clear that the stock market is likely to gather if the risk of trade war ends. Economists have warned that definitions could lead Economic inflation It greatly raises the chances of economic recession, according to Reuters. However, the evaluation of the effect on the price of bitcoin is still a difficult task. This is because some investors believe that the fixed monetary system of the encoded currency is as protection against Constant expansion World Currency Supplies.

Short -term association

In the short term, the positive relationship between Bitcoin and the stock market is expected to continue. However, the financial challenges of the United States government represented a possible chance for bitcoin to grow. On April 8, the US Treasury’s return in the United States increased for 10 years to 4.28 %, after a brief decrease to 3.90 % on April 7. This increase indicates that investors are demanding higher returns to keep these assets.

The growing cost of trading on $ 9 trillion in Federal government debts It is expected to increase maturity over the next 12 months of the financial defect and weaken the US dollar. The US dollar index (DXY) diverges from the American treasury yield, as it decreased to 103.0 on April 8 from 104.2 on March 31. This position may support the price of Bitcoin – Feelings that Blackrock shares CEO Larry Fink in his message on March 31 for investors.

Related to: Yuan is the weakest is “bullish for BTC” where Chinese capital goes to Crypto – CEO of BYBIT

Michael Gabin, chief American economist in Morgan Stanley, I mentioned In April 8, an agent: “We believe that the correct answer is to wait for the federal reserve in his current position for a longer period,” said CNBC. According to the updated Moreghan Stanley expectations, the US Federal Reserve is expected to maintain interest rates by 4.25 % -4.50 % until March 2026, adding that “the recession only would change the calculus calculation” and “the recession can mean previous and largest discounts.”

Bitcoin momentum is likely to become positive because traders realize that the American Federal Reserve has limited tools to avoid stagnation without risking inflation. While predicting the exact timing of hacking is still uncertain, the prolonged delay in solving trade war issues can push investors towards rare assets such as bitcoin, especially amid fears of reducing the potential value of the US dollar.

This article is for the purposes of general information, and it is not intended to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.