US Policies and Their Impact on Bitcoin Future

Cryptocurrency markets (Bitcoin) have seen a remarkable recovery after traders returned from their vacations, welcoming expectations of Donald Trump’s inauguration as US President. This recovery was clearly reflected in Bitcoin’s movements, which rose by 10% over the past week. The main digital currency surpassed the $102,000 level, approaching the recovery of the losses it incurred in early December. This rise comes after a sharp decline from a peak of $109,000 in the middle of the month to a local low of less than $92,000. Despite these fluctuations, it appears that traders are targeting a break of the $109,000 level to achieve further breakthroughs and achieve more gains.

Investment flows and their role in pushing Bitcoin higher

Investment flows into Bitcoin have increased in parallel with this improvement in the market, as flows into Bitcoin exchange-traded funds in the United States reached $987 million on Monday, the highest level since last November. Fidelity’s FBTC fund led these inflows with $370 million, followed by BlackRock’s IBIT fund with $209 million, and then Arc Invest’s ARKB with $71 million. BTC exchange-traded fund inflows are increasing significantly, reflecting the growing demand for the cryptocurrency and expectations for further gains.

US Policies and Their Impact on Bitcoin: Understanding the Relationship and Future Implications

US economic policies are one of the major factors that significantly impact cryptocurrency markets, especially Bitcoin. In light of expectations related to the administration of the new US President Donald Trump, expectations are increasing that the economic policies he will follow will contribute to stimulating more investments in BTC and cryptocurrencies in general. In this context, BTC markets are reacting to political and economic shifts in the United States and responding to them flexibly, highlighting the close relationship between US politics and global financial markets.

The impact of monetary policies on BTC

The monetary policies followed by the US Federal Reserve are a decisive factor in influencing Bitcoin. For example, if the Federal Reserve decides to raise interest rates or reduce monetary easing, this could negatively affect the cryptocurrency markets. Raising interest rates would strengthen the US dollar and reduce the attractiveness of high-risk assets such as BTC. However, if monetary policy remains accommodative, this could stimulate more investments in alternative assets such as Bitcoin.

Potential impacts of Trump’s policies on Bitcoin

Through the economic policies that Trump intends to follow, some traders expect that financial markets will be supported by stimulating investment and providing more support to economic sectors. These policies enhance expectations of gains in cryptocurrencies, especially in light of expectations of changes in legislation related to digital currencies, which could contribute to increasing demand for them.

In addition, Trump’s statements regarding cryptocurrencies may play a role in shaping the future path of Bitcoin. If the US President expresses support for the digital currency industry, or makes positive statements about blockchain technologies, this will enhance confidence in Bitcoin and contribute to pushing its prices towards further increases. On the contrary, any attempts to regulate or restrict this market may lead to a decline in demand for Bitcoin.

Technical Analysis of Bitcoin

Technically, Bitcoin appears to have completed a classic correction at the 61.8% Fibonacci retracement levels of the rally that the currency has seen since the beginning of November. According to market analysts, BTC is expected to resume its upward trend if the historical levels around $109,000 are broken. If this level is broken, Bitcoin may witness a significant acceleration in growth, which may lead to further price breakouts.

Future Outlook and Impact of the US Jobs Report

Despite this optimism, some analysts expect market volatility to remain limited until the US NFP report on Friday. Strong economic data could weigh on the US dollar, which could lead to higher interest rates. Such a rate hike could have a negative impact on riskier assets such as Bitcoin and other financial markets.

Bitcoin and Support and Resistance Levels

On the other hand, Fibonacci levels are one of the main technical tools that traders rely on to identify support and resistance points. This analysis anticipates price reactions when these levels break, and these predictions often drive self-fulfilling outcomes. Traders consider the $100,000 level crucial, expecting Bitcoin’s growth to accelerate once it surpasses this threshold.

Continued rise and targeting higher levels: Bitcoin is on its way to achieving new breakthroughs

Bitcoin has witnessed a wave of significant rise in recent weeks after falling to lows in late December. The digital currency rose by 10%, achieving a breakout above the $102,000 level, indicating the beginning of a new phase of positive momentum in the cryptocurrency markets. Despite the volatility that Bitcoin experienced in early December.

Investment Flows Boost the Upward Momentum

Investment flows into Bitcoin are increasing at a remarkable pace, with US-listed Bitcoin ETFs recording inflows of $987 million in a single day, the highest since November. Fidelity’s FBTC fund led the inflows with $370 million, followed by BlackRock’s IBIT fund with $209 million. These positive inflows indicate increasing demand for Bitcoin and expectations of a sustained price rise in the near term.

Technical Analysis: Targeting $109,000

Technically, expectations are growing that Bitcoin is on its way to breaking the $109,000 level in the short term. According to Fibonacci analysis.