24.03.2023 12:10 PM
Bitcoin gains momentum

While investors in traditional assets vacillate between Fear and Greed, bitcoin is steadily rising. Since the beginning of the year, the token is up 71% and poised to close the quarter with its best result since 2021, when it hit all-time highs. It managed to survive the crypto winter, withstand regulatory pressure, and climb out of the hole it fell into due to the FTX bankruptcy. And the BTCUSD bulls have the banking crisis to thank.

Quarterly dynamics of Bitcoin

This image is no longer relevant

When investors are unsure about the bright future of crypto, they sell bitcoin and switch to stablebcoins and deposits. In contrast, cracks in the banking system trigger the opposite process. The bankruptcy of credit institutions in the U.S. has brought to mind that tokens were created as an alternative to fiat money, and the crypto industry is an alternative to banks. The latter are now under pressure on three fronts: funding costs are rising, asset values are falling, and regulatory scrutiny is increasing.

The latter is also true for bitcoin. Coinbase has received notice from the Securities and Exchange Commission (SEC) of the regulator's plans to take enforcement action against the largest cryptocurrency exchange in the U.S. However, unlike traditional assets, cryptocurrencies have no panic about an impending recession. Open interest and trading volumes are on the rise, indicating huge demand.

Cryptocurrency trading volume dynamics

This image is no longer relevant

If we look back at 2020, there was a short-term recession associated with the pandemic, then BTCUSD and the Nasdaq Composite were at their best. Countries went into lockdowns: they needed technology to do something at home. Something similar is happening at the present time. The index of technology companies looks the best in the U.S. It has grown since the beginning of this year by almost 13%, while the S&P 500 added only 3%, and the Dow Jones index sank by 3%.

Investors' fear of the coming recession is competing with Greed. Traditionally, when the Fed ended its monetary tightening cycle, it was a favorable time for earning assets. And the risk of missing a buying opportunity hangs over traders like a sword of Damocles. For now, they prefer bitcoin, which is positively affected by the decline in real U.S. Treasury yields and its good performance during the previous recession.

This image is no longer relevant

Nevertheless, we must keep in mind that the recession is different. It's one thing to sit at home on a bag of money received from the government, another to stand in line for unemployment benefits. The reaction of BTCUSD to a recession can also be very different.

Technically, bitcoin's upward trend in the AB=CD pattern is gaining momentum. Its 161.8% target is located near the 30,500 mark, but reaching it is unlikely to say that the token has exhausted its upside potential. In any case, we continue to adhere to the previously announced buying on pullbacks strategy.

Marek Petkovich,
الخبير التحليلي لدى شركة إنستافوركس
© 2007-2023
كسب عائد من تغيرات أسعار العملات المشفرة مع إنستافوركس.
قم بتحميل منصة التداول ميتاتريدر 4 وافتح أول صفقة.
  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
    انضم إلى المسابقة
  • إيداع الحظ
    قم بإيداع 3,000 دولار في حسابك واحصل على $1,000 وأكثر من ذالك!
    في أكتوبر نحن نقدم باليانصيب $1,000 ضمن حملة إيداع الحظ!
    احصل على فرصة للفوز من خلال إيداع 3,000 دولار في حساب تداول. بعد أن استوفيت هذا الشرط، تصبح مشاركًا في الحملة.
    انضم إلى المسابقة
  • تداول بحكمة، اربح جهازا
    قم بتعبئة حسابك بمبلغ لا يقل عن 500 دولار ، واشترك في المسابقة ، واحصل على فرصة للفوز بأجهزة الجوال.
    انضم إلى المسابقة
  • بونص 100٪
    فرصتك الفريدة للحصول على بونص 100٪ على إيداعك
    احصل على بونص
  • بونص 55٪
    تقدم بطلب للحصول على بونص 55٪ على كل إيداع
    احصل على بونص
  • بونص 30٪
    احصل على بونص 30٪ في كل مرة تقوم فيها بتعبئة حسابك
    احصل على بونص

المقالات الموصى بها

لا تستطيع التحدث الآن؟
اطرح سؤالك في الدردشة.
Widget callback