Bitcoin Rallies on Soft USD
Bitcoin prices are pushing higher through the back end of the week after markets avoided the Fed creating any significant headwinds for risk assets. Traders have been cautious over the risk that a hawkish message from the Fed could derail risk appetite and drive a fresh US Dollar buying spree. However, with only a mildly hawkish statement from Fed, mostly undone by some dovish press conference comments from Powell, traders maintain forecasts for at least two cuts this year. As such, there was little to cause concern for crypto and other risk markets.
Fed on Crypto
Indeed, there were some crypto specific comments from Chairman Powell which the market has taken as a bullish sign. Commenting on crypto regulation, Powell said that banks could serve crypto customers as long as risks are understood and managed. These comments have been taken as further evidence of a forthcoming crypto-positive shift to occur in US mainstream finance under the Trump administration.
Trump & Bitcoin
Looking ahead, focus now shifts back to monitoring incoming guidance and action from Trump with the prospect of a US strategic Bitcoin reserve still seen as the big prize for BTC bulls. News this week that the head of the Czech central bank wants it to run a 5% BTC allocation in its reserves has been taken as a further indication of a growing shift in Bitcoin adoption, creating greater anticipation for a similar move in the US.
Technical Views
BTC
The retest of the broken bear channel highs and the 100,195 level support has found strong demand once again with price now set to test the 107,85 level. With momentum studies turning higher, focus is on a retest of the 113,690 highs and an eventual breakout.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.