Introduction
The price of Bitcoin has recently reached a new all-time high by surpassing the $120,000 mark. This increase is influenced by several factors, including the political decisions of U.S. President Donald Trump and the overall market developments.
Background and Influencing Factors
Political Decisions by Donald Trump
President Trump’s announcement of imposing 30% tariffs on the EU and Mexico has led to increased volatility in the markets. These measures could lead to a devaluation of the U.S. dollar, which in turn might enhance the value of Bitcoin as a safe-haven asset.
U.S. Inflation Data
The upcoming U.S. inflation data may also have an impact on the markets. Economists expect an increase in the Consumer Price Index (CPI) in June, which could raise living costs. This might lead to a further flight into cryptocurrencies as they are seen as a hedge against inflation.
Monetary Policy Developments
The U.S. government signals a possible monetary easing, including a rate cut, if inflation cools and labor market data remains stable. Such easing could weaken the dollar further and increase the Bitcoin price.
Market Development and Technical Analysis
The Bitcoin price has surpassed the $120,000 mark, indicating strong bullish momentum. Prior to reaching this level, the $120,000 threshold was viewed as a potential resistance line.
Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) showed positive signals, indicating a sustained upward movement. However, there are also warning signs that might indicate a potential correction.
Other digital currencies like Ethereum and Solana have also recorded significant price gains. Ethereum has broken through the $2,800 mark, while Solana is showing a strong bullish trend reversal.
Predictions and Future Prospects
Some experts expect the Bitcoin price to rise to $136,000 by the end of the year, based on sustained demand and positive market conditions.
Despite the positive developments, there are also risks and uncertainties, particularly concerning regulatory changes and geopolitical tensions that could impact the market.