After these recent drops, Bitcoin is recovering its colors...

Bitcoin, often referred to as digital gold, is going through a pivotal phase. After a significant drop in a few days, the main crypto seems to be regaining strength. However, this comeback hides deeper issues: American inflation, monetary policy, and the place of the dollar on the international stage. Far from being a simple market fluctuation, this Bitcoin rebound occurs in a context where economic and geopolitical pressures are redefining the contours of the global financial landscape.

A recovery supported by economic indicators

After a notable drop between September 5 and 7, 2024, Bitcoin regained a key resistance level around $57,225. This Bitcoin rebound is supported by favorable macroeconomic factors that encourage optimism. Indeed, the improvement in global economic prospects, coupled with the forecast of a slowdown in U.S. inflation, paves the way for greater market liquidity. Investors anticipate a less aggressive Federal Reserve on rate hikes, thus facilitating access to capital and encouraging investments in high-yield assets like Bitcoin.

This Bitcoin rise is the result of a recovery in the crypto market. Indeed, the positive dynamics observed around Bitcoin has led to an increase in other major cryptos. Ethereum (ETH), for example, has increased by nearly 4 %, with levels above $2,400, while Binance Coin (BNB) has gained more than 5 %. This widespread increase reflects investor confidence, who perceive the potential of cryptos. Bitcoin’s resilience to economic shocks stimulates optimism, and its role as the leader of the crypto market seems more confirmed than ever.

Geopolitical issues and the role of the dollar

While economic expectations play a decisive role in the recovery of Bitcoin, geopolitical tensions should not be underestimated. With the U.S. presidential elections in sight, the future of Bitcoin could be influenced by major political decisions. In particular, former President Donald TRUMP recently proposed a 100% tax on imports from countries attempting to bypass the dollar in their international transactions. This measure could, paradoxically, accelerate the process of dedollarization initiated by countries like China and Russia. Such an evolution would weaken the dollar’s position as the world’s reserve currency. This scenario could potentially benefit alternative assets like Bitcoin.

However, it would be naive to believe that the weakening of the dollar would automatically guarantee an increase in Bitcoin. Moreover, investors continue to favor tech stocks, whose strong fundamentals offer more predictable growth than cryptos. That said, Bitcoin’s resilience to political and economic uncertainties, combined with a stable derivatives market, could open up opportunities for investors in the coming months.

Bitcoin seems to be going through a recovery phase supported by economic expectations and geopolitical factors. However, the future remains uncertain. While the drop in interest rates and the weakening of the dollar may play in favor of crypto, competition from traditional assets and political uncertainties pose significant challenges.