How Trump affects bitcoin and what analysts await

The US macroeconomic factors continue to influence cryptocurrency and bitcoin (BTC), in particular, due to the fact that investors include cryptocurrencies to risky assets. Experts from 10x Research associated this with the expectation of investors of new trading duties in the United States, which are planned to be introduced from April 2. In addition to duties, analysts noted the influence of investors’ fears regarding inflation in the United States. Following this, 10x predicts a further drop in bitcoin prices below $ 80 thousand. RBC Crypto.

“Now we expect Bitcoin this week will drop below $ 80 thousand, especially taking into account the numerous factors that contribute to the risk, which will most likely put pressure on the shares and affect the cryptocurrency market,” 10x wrote.

“The duties proposed by President Trump, including a 25 percent fee for Mexican and Canadian goods entering into force on April 2, resumed fears about the trade war. Historically, such protectionist measures cause risk rejection in all classes of assets. And the cryptocurrency did not stand aside, ”said Ryan Lee, chief analyst of Bitget Research, Lee, the chief analyst of Bitget Research.

Risky assets are any assets that do not have a fixed profitability in national currencies. Traditionally, these include shares of companies that are openly traded on exchanges. Craint assets include trading instruments with fixed profitability, for example, in US dollars. In the classical sense, government bonds with interest income are included in the classical understanding.

After the price falls last week from the local maximum $ 88.7 thousand, reached on March 24, the price of bitcoin, the second day in a row is in the trading range from $ 81.5 thousand to $ 83.5 thousand. The main decrease in bitcoin price last week occurred from March 28 to 29, when the quotes fell by almost 7%, below $ 82 thousand. According to the data, according to the data. Binance, on March 31, 17:55 Moscow time BTC is traded in the region of $ 83.5 thousand. Starting from March 24, the total capitalization of cryptocurrencies dropped by about 6%, about 80%of tokens from the list of 100 the largest lost up to 25%in price.

In 10x, they noted an increase in investors’ fears about inflation in the United States. They associated this with the release of data on the basic price index of personal consumption expenses (PCE), released on March 28 (reflects changes in prices for goods and services acquired by consumers for personal consumption), which indicated the growth in inflation. PCE turned out to be higher than expectations of 0.3% of a month to a month – according to calculations for February, the figure reached 0.4%.

According to experts, this is partly caused by the introduction of duties to Trump, which “affects the mood of consumers.”

“Annual inflationary expectations jumped to 5.0%, which negatively affected risky assets. Although Trump initially hinted at a balanced approach to duties, his rhetoric shifted towards a more aggressive position, ”the 10x report says.

Nevertheless, not everyone is configured negatively. Summer Hasn, senior analyst at the Global Assets of the Xs.com Assets, told CNBC that April would become decisive for the sending of markets in the coming months and, if we can avoid a trade war, “perhaps the market has already reached the bottom and we will be able to see significant recovery after a global decline for both cryptocurrencies and shares.”

Experts also indicated a high correlation with the main stock indices – SP 500 and NASDAQ100, tracking prices for the largest American promotions. The value of the correlation of the price of bitcoin with these indices is located in the region of 0.83 and 0.87, respectively.

The value of 1 (one) shows that the correlation of assets is at a high level and the quotes move in one direction. The value of -1 (minus 1) shows that the quotes move in different directions.

“The choice of time is especially important, since digital assets retain a high correlation with traditional markets, assuming that the weakness of the shares can continue to pull the prices for cryptocurrencies down,” added whether he added.

Experts also believe that a positive impulse for bitcoin can be obtained from the additional actions of the US administration regarding bitcoin reserve.

“If Trump realizes at least part of the expected initiatives to his hundredth day of his stay, for example, will launch the first stage of the crypto-cutter or legalize any format of calculations in bitcoins at the federal level, this can provoke short-term growth in April, which can potentially push prices outside the borders of $ 100 thousand.,” Said CNBC, the main operational director of the MexC excess of the Mexc Tracy Gene, adding that if they continue to focus on duties and geopolitical threats, the effect may be the opposite.

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Source: Cryptocurrency

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