CoinShares stated that over the past two weeks, Bitcoin has exhibited price dynamics increasingly similar to gold, and renewed concerns about U.S. financial stability have supported the rise of $BTC. According to the company, the U.S. Treasury's purchases of long-term government bonds and concerns about national debt played a crucial role in Bitcoin's rise from a low of $60,000 to $80,100.
However, CoinShares added that the main obstacle for Bitcoin's growth remains the monetary policy of the Federal Reserve. The company assessed that to sustain a breakthrough above $80,000, the realization of one of two major scenarios may be required.
In the first scenario, resolving the conflict with Iran would lead to lower oil prices and, consequently, lower inflation expectations. Such a development could ease inflationary pressure on the Fed, creating a more favorable environment for risk assets.
The second scenario involves further weakening confidence in U.S. national debt. According to CoinShares, growing concerns about the sustainability of U.S. national debt may prompt investors to turn to non-state stores of value, such as Bitcoin and gold, potentially increasing demand for $BTC.
*This is not investment advice.
end-content
