As BTC Passes $88K, Bitcoin Investors Could be Seeing a Strong Bullish Surge
Bitcoin has been climbing fast for a few days but could slow down soon due to tariff pressure from China.
Quick overview
- Bitcoin recently surged from $74,424 to $88,106, raising questions about its potential peak.
- The cryptocurrency's rise is attributed to a pause in tariffs and its decentralized nature, which shields it from U.S. dollar fluctuations.
- Despite a strong bullish trend, concerns linger about Bitcoin's sustainability due to external pressures like the ongoing trade war with China.
- While reaching $90K seems possible soon, negative economic factors may hinder Bitcoin's ability to maintain that level.
Live BTC/USD Chart
Very recently, Bitcoin (BTC) fell to $74,424, but it is now at $88.106 (BTC/USD) and rising, leading investors to wonder how high the coin can go before it loses steam.
Since Trump put a pause on tariffs, Bitcoin has done remarkably well, even as the U.S. dollar has faltered against the euro, reaching record lows. Because Bitcoin does not belong to a single country thanks to its status as decentralized currency, it is not as affected by the factors that push down the U.S. dollar. However, when the stock market is down (as it is now), Bitcoin can suffer as investors fear what will happen to their money if the economy fluctuates.
Bitcoin has gained more than 4.30% in the last 24 hours, and it is still on the rise. The coin may surpass $90K as early as later in the day on Monday thanks to its strong momentum. There is concern, however, about what will happen to BTC’s price since it is moving so quickly upward.
What to Expect from Bitcoin
When BTC behaves like this, with strong bullish movement, we rarely see it sustain that trend for very long. What tends to happen is that the bullish force subsides quickly and then the price falls down slightly in response to cooling interest. Bitcoin is being helped by the fact that tariffs are mostly on pause between the United States and many other countries, but China is still putting a lot of pressure on the U.S in this trade war. Additionally, China has threatened action against any countries that negotiate with the U.S. to restrict trade with China.
Even though the U.S. has backed away from much of its trade war with other countries, the Chinese issue is causing serious trouble for the stock market and could bring an end to Bitcoin’s unexpected surge. There is rumor that the Chinese government will begin to allow Bitcoin trading in the near future, and there is hope that Trump’s administration will lessen the regulatory framework around cryptocurrency, but these are not the kind of changes that will happen very soon, in all likelihood.
That means that Bitcoin is at the mercy of the trade war. With no interest rate cuts expected in the near future, and the potential for higher inflation, according to the Federal Reserve, Bitcoin could have trouble keeping up its momentum and holding onto its current gains.
Even though $90K is a very likely achievement this week, we do not expect BTC’s price to stay above that level for long. There are simply too many negative factors at work right now to keep the crypto market surging.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals