The price of Bitcoin (BTC) increased by 3 % on March 24, emitting a decrease of $ 76,900 on March 11 despite its failure to maintain the level of $ 88,000. Now, traders are wondering about the factors that can pay the daily Bitcoin closure above $ 92,000, which last occurred on March 3. In addition to thwarting investors from the encrypted currency, gold is traded by only 1 % of the record number of $ 3,057, while the price of Bitcoin exceeds 19 % of its highest level ever.
S & P 500 Futures (left) versus Bitcoin/USD (right). Source: Tradingvief / CointeleGRAPH
Some analysts attribute the recent price of Bitcoin to the company’s strategy, which increases its BTC reserves, while others highlight the total economic factors, such as reducing inflation expectations and a more soft position than US President Donald Trump on the tariff. Despite this constructive background, traders are wondering about what prevents bitcoin from maintaining its bullish momentum.
The bullish trend of Bitcoin is limited, where investors fear economic stagnation
Economists expect signs a Slow down At the PC PS (PCE) index, which is expected to rise by 2.7 % in February, according to Yahoo News. This data, which is the preferred inflation measure of the American Federal Reserve, is scheduled to be released on March 26.
Displaced expectations for September 17 FOMC. source: CME Fedwatch tool / Cointelegraph
If this is emphasized, the most enlarged inflationary trend will support the statements of the Federal Reserve Chairman Powell on temporary inflation and increase the possibility of interest rates in 2025, as shown in the sacrifice market.
With the US Central Bank turning into a less restricted monetary policy, risk markets usually benefit from increased liquidity and reduce the attractiveness of fixed income. However, the uncertainty in economic growth remains.
Investors are increasingly concerned about the risk of stagnation due to excessive assessments in artificial intelligence shares and fears that US federal spending discounts can negatively affect consumers and commercial real estate market. While these problems are directly related to Bitcoin, merchants fear that all risk markets may suffer if the recession threat appears.
The Wall Street Journal reported that President Trump is considering expanding some of the tariffs that were initially planned on April 2. Although it is not confirmed, the news indicates that Trump may exclude certain duties, especially in industry and grant some countries. On March 24, futures in the S&P 500 increased by 1.5 % as investors were looking at the risk of low economic shrinkage, and they may support bitcoin price gains.
The strategy buys more bitcoin, but is its tactic sustainable?
On March 24, the strategy announced the acquisition of an additional amount of $ 584 million, which increased its shares to 506,137 BTC. The funds for this last purchase came from the sale of 1.97 million shared shares, along with the preferred stock version program of $ 21 billion. These expanded fundraising options have improved the company’s chances of reaching the goal of acquiring $ 42 billion.
Although this news seems positive for the Bitcoin price in the short term, if the American Federal Reserve is implementing expansion measures, it is possible that corporate profits are accelerated, making stocks relatively cheaper. Likewise, the decrease in the risks of the global tariff war is widely benefits the stock market and reduces risks in the sectors of artificial intelligence and commercial real estate.
Related to: Bitcoin “more likely” to strike $ 110,000 before 76.5 thousand dollars – Arthur Hayes
source: Dexyydx
Critics argue that the strategy was the main factor that supports the Bitcoin level of $ 80,000, which poses a risk of price corrections if the company fails to raise additional funds or stop its stock issuance program for any reason. However, this view overlooks the fact that Bitcoin boxes circulated on the Stock Exchange (ETFS) witnessed $ 786 million in net flows between March 14 and March 21.
In essence, Bitcoin is in a good position to restore 92,000 dollars, although it still depends on the total economic conditions. Regardless of Gold’s performance, investors look at Bitcoin as risk assets, in favor of a higher association with the stock market, at least in the short term.
This article is intended for general information purposes and does not aim 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.
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