Will Bitcoin reach $70k, again? What BTC's rise means for bonds and dollars.
Discover how BTC's climb, amid rate cuts and a weakening dollar, might shape investment strategies as it flirts with $70k.
Key points
- Bitcoin prices have rallied significantly in the last week, now trading above $64k
- News of ETF approvals and increased speculation of another Trump presidency have fueled cryptocurrency demand
- Lowering yields on Treasuries and a weakening US dollar have sparked interest in risk-on assets as traders anticipate Fed rate cuts
BTC breaks through $64,000
Bitcoin has surged past $64,000 midweek after lingering below $60,000 throughout July. BTC was trading as low as $55,000 last week before climbing over the weekend and into this week. This revival is attributed to new cryptocurrency ETF approvals and speculations about possibly favorable political developments, such as the potential reelection of a pro-crypto former President. Such landmarks reinforce investor confidence and fuel market dynamics in the crypto space.
Could Bitcoin reach $70,000?
Having briefly touched above $70,000 during May and June, Bitcoin demonstrated its capacity to reach these heights, albeit momentarily before retreating. The volatility seen during these periods highlights both the asset's potential and its instability, sparking debates among traders about its near-term trajectory. In the long-term, pro-crypto pundits have called for much higher price targets, citing the value of the underlying technology and potential range of capabilities across industries.
Lower interest rates fueling cryptocurrency rally
Futures markets are anticipating further rate cuts by the Federal Reserve, potentially increasing the liquidity available for investment in assets like Bitcoin. This scenario suggests that lower interest rates might continue to drive money towards higher-risk opportunities, including cryptocurrencies, as investors seek better returns.
US dollar falls on weakening demand
As US Treasury yields decline, the US dollar has weakened, prompting investors to pivot towards alternative assets offering better returns. This shift is not only about seeking yield but also diversifying against potential currency devaluation, thereby influencing increased investment in cryptocurrencies and other markets.
How to trade US dollar
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.