Amidst macroeconomic instability, Bitcoin is reaching new highs, approaching the $88,000 mark. However, traders are cautious due to high market volatility.
Reaction to the US Trade War
The US trade war is not only increasing uncertainty in financial markets, but also contributing to new records for gold prices. While stocks and the US dollar are suffering from the negative effects of the trade war, investors are looking for alternative instruments to preserve capital. Gold and Bitcoin act as safe havens for investors, reacting to macroeconomic instability.
Weakness of the US dollar
The US dollar has reached three-year lows, and the US dollar index (DXY) has fallen 1.3% in a week. The weakness of the American currency could stimulate growth not only for Bitcoin, but also for other commodities. Investors see this as an opportunity to profit against the backdrop of a weaker dollar.
Short-Term Price Fluctuations
Despite short-term price fluctuations, newcomers to the Bitcoin world are making profits. However, short-term holders are still losing money, which could maintain selling pressure. To neutralize this pressure, it is important for Bitcoin to close above $91,000.
Analysts continue to monitor the market developments and recommend investors to exercise caution and diversify their portfolios in the face of macroeconomic instability.
