Over the last year, it has seemed that Bitcoin was very tied to American interest rates. So when expectations of increases made Bitcoin go down and expectations of decreases made Bitcoin go up. This is a pattern that is normally associated with stocks since it is considered that companies will be able to finance themselves more cheaply and invest more.
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In the case of Bitcoin, it is understood that there will be more money in the market and that this will cause more investment in the king cryptocurrency. This would contradict Bitcoin being digital gold since gold moves in the opposite direction as it is considered a safe haven. But we all know that Bitcoin is different, a different asset that is influenced by multiple patterns.
The new American president is playing with tariffs and driving the planet half crazy. This should bring inflation in the short term which would bring interest rate increases. That would mean a drop in Bitcoin, however, in recent weeks it has been resisting that trend and it seems that many, including me, expect this to be a very bullish year.
Will Bitcoin defy logic again? We'll see!
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