Bitcoin Resilient as Money Printing Nears Return
Bitcoin (BTC) has experienced a 2% increase in the last 24 hours, bouncing back after struggling to surpass the $61,500 resistance level. The fact that the price has stayed above $62,500 shows that Bitcoin can still have positive price movements even with outflows from the U.S. spot Bitcoin exchange-traded fund (ETF), which saw $100 million leaving over four days. Several factors have contributed to improving sentiment towards cryptocurrencies, starting with China’s announcement of issuing $138 million in long-term bonds to boost the economy. This move signals that governments are recognizing the increased risks of recession.
China’s decision to inject liquidity into the economy has led many to anticipate further injections from the country’s central bank, including potential interest rate cuts. This is in response to recent expansive measures by the U.S. Federal Reserve (Fed), which increased the U.S. monetary supply in March for the first time in two years. While injecting more money initially appears beneficial, it can lead to higher inflation over time. Scarce assets like Bitcoin may become more attractive as fixed-income investors realize that their returns are not keeping up with rising inflation.
Investors are preparing for a trend where governments will need to provide liquidity to prevent economic crises. While some argue that the stock market will benefit the most from this added liquidity, high interest rates can raise capital costs for companies. Debt issued in the past 16 years may face significantly higher rates when refinancing. Fed officials have hinted that interest rates could stay elevated for an extended period, a strategy aimed at delaying inflationary pressures and encouraging borrowing to support the employment and consumer markets.
The Federal Reserve’s actions might inadvertently lead to more borrowing for scarce assets like Bitcoin as a hedge against inflation, rather than stimulating the economy. It is still too early to fully assess these risks, but Bitcoin investors are doubtful about the Fed’s ability to achieve a smooth transition. In an unexpected twist, the return of social media influencer “Roaring Kitty,” known for their involvement in the GameStop stock rally earlier this year, has also influenced Bitcoin’s value on May 13. Cryptocurrency investors believe that growing distrust in banks and traditional finance, coupled with recent government bailouts, may drive more people towards cryptocurrencies.
21 thoughts on “Bitcoin Resilient as Money Printing Nears Return”
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Injecting more money will only lead to inflation, making Bitcoin less valuable.
Distrust in banks won’t magically make Bitcoin a stable investment. It’s just wishful thinking. 💔
Scarce assets like Bitcoin are becoming more attractive as fixed-income investors realize their returns are not keeping up with rising inflation. With central banks injecting liquidity into the economy, it’s no wonder investors are turning to Bitcoin as a hedge against inflation.
Government bailouts won’t drive more people towards cryptocurrencies. It’s just a fantasy.
Bitcoin is on the rise! This is great news for cryptocurrency investors! It’s amazing to see how Bitcoin can still have positive price movements despite outflows from the U.S. spot Bitcoin exchange-traded fund.
The stock market will benefit more from liquidity injections than Bitcoin. It’s just wishful thinking.
It’s fascinating to see how governments providing liquidity to prevent economic crises is impacting different markets. The stock market might benefit, but high interest rates can raise capital costs for companies. We could see more borrowers turning to scarce assets like Bitcoin instead.
Governments providing liquidity won’t help Bitcoin’s long-term value. It’s just a short-sighted solution.
It’s still early to assess the risks fully, but it’s understandable that Bitcoin investors are doubtful about the Federal Reserve’s ability to achieve a smooth transition. 🤔⏳ However, the return of “Roaring Kitty” to the scene and growing distrust in banks and traditional finance might just drive more people towards cryptocurrencies! 💪🚀
Bitcoin as a hedge against inflation? Give me a break. It’s just a risky gamble.
Bitcoin’s increase is just temporary. It can easily drop again.
So “Roaring Kitty” is now influencing Bitcoin’s value? That’s just a gimmick. 🙄
Bitcoin is not a safe investment. It’s just a speculative bubble waiting to burst.
Outflows from the U.S. spot Bitcoin ETF show that people are losing faith in Bitcoin.
is nothing compared to what Bitcoin used to be worth. It’s still a long way from its peak. 💸
China’s decision to issue long-term bonds to boost the economy is a game-changer! The fact that governments are recognizing the risks of recession is a positive sign for the future of cryptocurrencies.
China’s bonds won’t save Bitcoin. It’s just a temporary boost. ⌛
It’s truly incredible how technology and changing attitudes are shaping our financial landscape. The future looks bright for Bitcoin and other cryptocurrencies!
Interest rate cuts won’t do much for Bitcoin. It’s just an illusion of improvement. 💔
The Federal Reserve’s actions will have little impact on Bitcoin. It’s just a distraction from the real issues. 💔
Who cares about a 2% increase? The overall trend is still downward. 📉