Bitcoin inflation resistance, corporate buying drives price
Stock markets reacted positively to the temporary suspension of US-EU import tariffs, with the S&P 500 rising 1.5%. Concerns about a global recession limit Bitcoin's upside, despite its current price around $110,000 and a market capitalization of $2.2 trillion, surpassing Google and Meta. Traders estimate a 41% chance the US Federal Reserve will maintain interest rates through September, up from 2% a month prior. Higher capital costs typically negatively impact risk assets like Bitcoin, but potential Fed liquidity injections may counter this. Bitcoin's correlation with the S&P 500 remains above 70%, indicating potential downside if equities decline. A 6.3% drop in US durable goods orders signals economic weakening. Disappointing corporate earnings could lead to faster interest rate cuts, benefiting companies. Trump Media plans to acquire Bitcoin, framing it as a strategic asset, which may influence its market behavior independently of traditional assets. Bitcoin's appeal as a hedge against systemic financial risk is growing amid increasing institutional interest.
