"Bitcoin has recorded an impressive rebound, surging from a recent low near $109,000 to almost $120,000 in just a few sessions. This move reflects strong demand, supported by institutional inflows through ETFs and growing expectations that U.S. monetary policy may be approaching a phase of easing. The rally also underscores Bitcoin's expanding role in global portfolios, serving both as a risk asset and as a hedge against financial and geopolitical uncertainty."
"Fresh economic data paint a "warm but uneven" picture: ADP disappointed with the steepest decline in 2.5 years (-32K), the ISM Manufacturing Index remained below 50 signalling contraction, while housing market indicators and durable goods orders surprised to the upside. This divergence makes it difficult for the Fed to set a clear stance, yet it strengthens expectations that interest rates have already peaked, lowering the opportunity cost of holding assets such as Bitcoin."
Bitcoin rebounded sharply from about $109,000 to nearly $120,000 in a few sessions, driven by strong demand and institutional ETF inflows. Expectations that U.S. monetary policy may be moving toward easing lowered the opportunity cost of holding Bitcoin, supported by a weakening dollar and stabilizing U.S. real yields. Recent economic data are mixed: ADP employment fell by 32,000, the ISM Manufacturing Index remained below 50, while housing indicators and durable goods orders surprised higher. Strong upcoming labor data could revive a higher-for-longer rate outlook and boost the dollar, increasing downside risk. The U.S. government shutdown could delay key reports and amplify volatility.
Read at London Business News | Londonlovesbusiness.com
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