Bitcoin price continues to rise while the dollar faces challenges in the US.
Given the possibility that the Federal Reserve of the United States lower interest rates this year, the dollar falls against other currencies. Meanwhile, the tensions between Iran and the United States offer greater stability to the Japanese yen and the price of bitcoin increases significantly since last weekend.
The best-known cryptocurrency in the world exceeded USD 11,000 for the first time since March 2018. In this way, bitcoin increases almost 200% over the course of this year, driven by the plan presented by Facebook for the launch of the pound, stoking the enthusiasm for the use of cryptocurrencies.
Meanwhile, investors are waiting for a possible declaration of truce in the trade war between the presidents of the United States and China, Donald Trump and Xi Jinping. This, in the framework of the summit of the Group of 20 (G20) to be held in Japan this week.
“The interest is in the moderate turnaround that the Federal Reserve gave last week and what happens in the G20 later this week,” said Brian Daingerfield, head of forex strategy in Stamford, Connecticut. “With the G20, it is difficult to have confidence in the direction of the market.”
In this way, the markets believe that if Washington and Beijing do not control their heated rhetoric about trade, then the Federal Reserve will be forced to cut interest rates. The objective of this measure is to avoid a broader economic slowdown, as a result of higher tariffs on US imports.
On this, the Vice Minister of Commerce of China, Wang Shouwen, said that both China and the United States should engage in trade negotiations.
Also, according to the FedWatch tool of the CME Group, federal funds futures indicate that there is a high probability that the Federal Reserve will cut rates at the end of July. These expectations are what have weakened the dollar, which fell 1.57% against a group of six currencies last week. Your biggest weekly loss in four months. This decline occurs amid the rise in the price of bitcoin.
Hedge funds have also become slightly bearish for the dollar and bets have increased on the weakness of other currencies, such as the Australian dollar, whose outlook within the global economy has deteriorated.
The Japanese yen, for its part, lost some strength against the dollar, after Trump suspended a US military attack on Iran last week. Although the tensions between the two nations remain high. On June 24, the US president imposed new sanctions on Iran in an attempt to curb its nuclear program.
However, this June 24 the yen remains stable at 107.31 per dollar, after reaching 107.04 units per dollar last Friday. Meanwhile, nervous traders seek to acquire other currencies to serve as a refuge. Among the cryptocurrencies, bitcoin increases 4.23% in the last 24 hours, with a price of USD 11,323.81 according to LiveCoinWatch.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.