Amid significant declines in traditional stock markets, such as the S&P 500 and Nasdaq, Bitcoin has shown resilience around the $27,900 resistance level.
The U.S. government is still dealing with the economic aftermath of the COVID crisis, which has led to inflation. To combat this, the Federal Reserve has raised interest rates, with the possibility of further hikes this year. Additionally, the U.S. Treasury plans to borrow a substantial $1.85 trillion in the latter half of the year.
Europe and emerging markets have felt the impact of extensive money printing, prompting central banks, particularly in Europe, to aggressively raise rates to protect their currencies. This has turned the U.S. post-COVID economic boom into a European challenge.
Surprisingly, Bitcoin remains robust amidst this turmoil, a deviation from its historical behavior during market turbulence. However, it still faces resistance at $27,900, just below the 200-week moving average, which could prolong the initial phase of its bull market.
There are optimistic signs, including China’s liquidity injection to support its economy and the potential for the U.S. to engage in significant money printing.
Additionally, regulatory obstacles for cryptocurrencies at the SEC may ease, allowing Bitcoin to continue its upward trajectory.
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