Bitcoin is experiencing a high bull phase, motivated by increasing concerns concerning the weakening of the US dollar and the unprecedented interest of financial giants like Blackrock.
Pressure and dollar nourished on the edge
President Donald Trump puts pressure on the federal reserve to reduce interest rates, while the president of the Fed, Jerome Powell, has so far maintained an aggressive approach against inflation. Nevertheless, Signals of a Taureau Tour strongly emerge.
According to Deutsche Bank analysts, led by George Saravelos and Tim Baker, The conditions of a dollar bear cycle are now ripe.
The influence of the situation would also be a profound change in the trade policy of the United States and a redefinition of their global geopolitical role.
Experts said that “in a world of extreme uncertainty and rapid changes in political standards, the risk of market dislocations and regime changes remains high.” In other words, the loss of strength of the dollar does not seem to be a temporary phenomenon, but rather the beginning of a deeper historical phase.
Bitcoin as a refuge in geopolitical fragmentation
With the prospect of a Dollar weakenedInterest increases for alternatives of resilient value such as Bitcoin. Jay Jacobs, chief of the themes and active funds of Blackrock, underlined how “geopolitical fragmentation” emerges as a “megaforce” to shape the global economy for the decades to come.
Jacobs also stressed that Bitcoin is gradually hates technological actionsbehaving more and more like an asset “not correlated” and, therefore, particularly attractive in a context of global agitation.
This context can still feed the Bitcoin demand, considered by many – including BlackRock – As “digital gold” and a safe refuge against monetary and geopolitical instability.
The decisive thrust of BlackRock Bitcoin ETF
Blackrock's influence on the cryptocurrency market became concrete in January 2024, with the approval of their Bitcoin Etf spot, named Ibit. This step represents a Historical turning point For the integration of bitcoin into traditional financial markets.
Larry Fink, CEO of Blackrock, has made a complete reversal of his past posts, recognizing that Bitcoin is no longer just a “money laundering index” but a legitimate active and a cornerstone of the digital revolution.
This new vision is part of a much broader project: To create an alternative based on blockchain to the US dollarAn initiative which, if it is over, could radically modify the current global financial system.
Analysts see bitcoin ready to increase
With the erosion of the value of the dollar and an increasing geopolitical disalculation, Bitcoin price has already shown solid bull signals, approaching $ 100,000.
According to a highly followed crypto investor (not specified in the source), a “Market inversion” occurs and would now be “the time to buy everything” before the start of what should be a new phase of parabolic growth for Bitcoin.
In addition, according to the FX chief of Goldman Sachs, recently underlined, the weakness of the dollar is “here to stay”, further strengthening the story of the cryptocurrency.
Systemic scrinations and new opportunities
The combination of:
- a more protectionist trade policy,
- A Erosion of confidence in the dollar,,
- The affirmation of the blockchain as a new financial architecture,
Created a fertile soil for a “megaorce geopolitical fragmentation shock”, as defined by analysts. In this scenario, Bitcoin appears as one of the few active active people perceived as safe and independent.
Institutional investors quickly recognize this reality, accelerating an adoption trend which, until a few years ago, seemed distant.
A future to write
The year 2024 promises to be A year of historical change For Bitcoin and the entire global financial system. The convergence of monetary policy, geopolitical disorders and technological innovation redefines the limits of value and confidence.
Investors will have to move carefully, aware that in period of great uncertainty, opportunities are multiplying for those who can read the weak signs of change early.
Bitcoin is already on the road new heights. But, as always, the weather will confirm if the digital metal will be really able to be held to the entire Fiat economic system.
