empty
28.04.2025 07:03 PM
Bitcoin Can't Lose

There's never a dull moment with Bitcoin. Sometimes it behaves like a risky asset, sometimes like a safe haven. At the beginning of April, the cryptocurrency was jokingly referred to as Nasdaq 100's errand boy. Now, as the second month of spring draws to a close, the token is being compared to gold. Bitcoin rose on rumors that Jerome Powell would be fired as Chairman of the Federal Reserve, and even after Donald Trump announced he had no intention of doing so, BTC/USD still climbed higher. Is Bitcoin a no-lose proposition?

In reality, the most important factor for cryptocurrency is that no one dares to openly oppose the President. Trump boldly criticized the Federal Reserve and challenged the central bank's independence. That suggests he won't face much resistance in promoting his idea of establishing a strategic Bitcoin reserve.

Political uncertainty in Washington has eroded investor trust in the U.S. dollar, benefitting safe-haven assets. Bitcoin has joined their ranks, as indicated by its increasing correlation with gold.

Gold-Bitcoin Correlation Dynamics

This image is no longer relevant

Cryptocurrency is now being used as a store of value, and the weakening of fiat currencies, led by the U.S. dollar, plays to Bitcoin's advantage. Capital has started flowing back into specialized exchange-traded funds (ETFs). Bitcoin-focused ETFs just recorded their third-strongest daily inventory rally since records began.

Another factor playing in BTC/USD's favor is the return of large institutional investors to the crypto market, buoyed by the 47th U.S. President's favorable stance toward digital assets. Merger and acquisition volumes are surging and could soon break the 2021 record of $17 billion.

Bitcoin ETF Capital Flow Dynamics

This image is no longer relevant

At the same time, traditional safe-haven assets like the Japanese yen, Swiss franc, and gold have retreated following the White House's conciliatory rhetoric. Logically, Bitcoin should have pulled back too — but it didn't. Investors are now left wondering: will Bitcoin once again fall under the influence of rising U.S. stock indexes at the end of April? Is it reverting to being a risk asset?

This image is no longer relevant

The coming reaction of Bitcoin to the releases of U.S. GDP data for the first quarter and the April jobs report will be very telling. If the U.S. economy remains resilient despite aggressive protectionist policies, it could support stock indexes. Will Bitcoin follow?

Technical Outlook:

On the daily chart, BTC/USD's rebound from the pivot level of 93,000 clearly showed who's in control. The bears are too weak, and bulls continue to dominate the market. Long positions initiated from 83,170 have proven to be an excellent decision, as has scaling up above 85,000. A new trigger for further cryptocurrency purchases would be the breakout of the local high at 95,850.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY. Analysis and Forecast

The Japanese yen is attracting buyers following a recent decline, owing to its status as a safe-haven asset in times of uncertainty. The anticipated recovery of the yen is supported

Irina Yanina 18:47 2025-05-06 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair is struggling to establish a clear short-term direction, trading within a multi-day range as markets await decisive news from the upcoming FOMC meeting regarding the interest rate

Irina Yanina 11:05 2025-05-06 UTC+2

USD/CAD. Analysis and Forecast

Today, the USD/CAD pair remains positive within a familiar range, without showing strong buying momentum. The strengthening of the U.S. dollar following a two-day decline is attributed to the positive

Irina Yanina 11:03 2025-05-06 UTC+2

The Market Took a Step Back

The longest winning streak of the S&P 500 in two decades has come to an end. But who's responsible? The Federal Reserve, which plans to keep rates unchanged

Marek Petkovich 10:16 2025-05-06 UTC+2

Markets Anxiously Await the Fed's Monetary Policy Meeting (Potential for Renewed Growth in Bitcoin and #NDX)

Markets remain tense. The U.S. Dollar Index and the cryptocurrency market are stagnating, caught between opposing forces. Investors are tensely awaiting the outcome of the Federal Reserve's monetary policy meeting

Pati Gani 10:02 2025-05-06 UTC+2

GBP/USD Overview – May 6: Trump Goes After the Film Industry

The GBP/USD currency pair traded upward during the first half of Monday and downward during the second half. While the U.S. dollar didn't lose much this time, its brief attempt

Paolo Greco 07:04 2025-05-06 UTC+2

EUR/USD Overview – May 6: The Protest Against Donald Trump Continues

The EUR/USD currency pair began a new upward cycle on Monday. At this point, no one is likely surprised by another drop in the U.S. dollar. The market started selling

Paolo Greco 07:04 2025-05-06 UTC+2

What to Pay Attention to on May 6? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Tuesday. In the Eurozone and Germany, the second estimate of April's services PMI will be published, but these are unlikely to attract

Paolo Greco 05:49 2025-05-06 UTC+2

Fed Rate Cut Probability Is Near Zero

This week marks the third Federal Reserve meeting of the year. At the first two meetings, monetary policy parameters remained unchanged, and there is virtually no chance of a rate

Chin Zhao 00:50 2025-05-06 UTC+2

The Dollar Sell-Off Shows No Signs of Slowing Down

The latest CFTC report reveals that the dollar sell-off continues unabated. Weekly changes against major currencies amounted to -$3.1 billion, bringing the total accumulated short position to -$17.1 billion

Kuvat Raharjo 00:50 2025-05-06 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.