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Bitcoin’s Supremacy: Outshining the US Dollar, Euro, Yuan, Yen, and Ruble – Are Governments Getting the Message?

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  • Bitcoin surges past the $26,000 mark amid rising inflation concerns.
  • Analyst Mike McGlone perceives potential for Bitcoin amidst increasing interest rates, drawing insights from its past performance.

Navigating Economic Ripples with Bitcoin

As turbulence swells in the economic skies due to heightened inflation, Bitcoin (BTC) emerges as a beacon, shining particularly bright by crossing the pivotal $26,000 benchmark. This development trailed the revelation of the US Consumer Price Index (CPI) for August, showcasing a heightened annual inflation rate.

A Beacon Amidst Shifting Sands?

Mike McGlone, an esteemed commodity strategist from Bloomberg Intelligence, posits a thought-provoking perspective on Bitcoin’s journey in the landscape riddled with escalating interest rates. Central to McGlone’s analysis is Bitcoin’s 20-week moving average. This metric, he suggests, isn’t just pivotal for Bitcoin but can hint at future trajectories for various risk assets, encompassing traditional stock markets. In essence, Bitcoin’s movement might offer glimpses into forthcoming market liquidity and speculative inclinations.

Linking Bitcoin’s behavior with the Federal Funds Futures One-Year (FF13) rate, McGlone observes a rate above 5%. This implies a bleak outlook for liquidity mitigation from the Federal Reserve’s end. Recounting Bitcoin’s dynamics in early 2022, McGlone discerns a parallel between the digital coin and the futures pricing in the ongoing cycle of financial tightening. But a word of caution from him underlines the swift rise of the federal funds rate from zero to 5.25% as a potential hazard for all risk-bearing assets, Bitcoin included.

Unraveling Technical Tangles

Bitcoin’s price stands at a commendable $26,258 at present, with its seven-day trajectory marking an ascent of 1.8%. Nevertheless, while Bitcoin has comfortably perched above the $26,000 demarcation, some market sages hint at waning momentum. Keith Alan, of Material Indicators, suggests that Bitcoin’s current vigor is adequately robust to maintain the majority of its recent gains.

Yet, not all is smooth sailing for Bitcoin. Looming over it are technical resistances, such as the daunting “death cross”, characterized by its 50-day moving average plummeting below its 200-day counterpart. Moreover, Alan earmarks the 100-day moving average at $28,292 as a potential hurdle, representing the zenith of Bitcoin’s current pricing band.

In the vast expanse of financial realms, Bitcoin‘s ascendancy past $26,000 becomes significant, especially against the backdrop of spiraling inflation fears and the ramifications of amplified interest rates on global markets. With its undeniable stature as a digital asset and value reservoir, Bitcoin attracts vigilant eyes, even as it grapples with technical impediments that may shape its impending price journey.

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Marcel Knobloch
Marcel Knobloch
Marcel is the managing partner of ETHNews and is also known as Collin Brown in the crypto community. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Marcel endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Marcel's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Marcel continues to be a driving force in the cryptocurrency community. Business Email: marcel.knobloch@hotmail.com Phone: +49 160 92211628