empty
27.09.2024 11:09 AM
Four reasons to buy Bitcoin

Through hardships to the stars! Bitcoin is enjoying its investment luster again thanks to worldwide monetary policy easing, rising global risk appetite, and hopes for improved crypto regulation in the US. Regardless of who comes to power—Kamala Harris or Donald Trump—digital assets will find support from the future president. This optimism is fueling the BTC/USD rally.

Bitcoin opened in September in a subdued mood. Historically, over the past decade, it has fallen by an average of 5.9% during the first month of autumn. However, there are exceptions to every rule. In 2024, Bitcoin gained about 10%, thanks to the aggressive start of the Federal Reserve's monetary expansion and support from both US presidential candidates. Kamala Harris promises to increase investment in the crypto industry and artificial intelligence, while Donald Trump plans to make America the crypto capital of the world.

Bitcoin's performance in September

This image is no longer relevant

The lower the interest rates, the cheaper the money, and the more liquidity there is in the financial system. An increase in the supply of fiat currencies reduces their purchasing power and drives investors to seek alternatives. The best of these are assets whose supply is limited by nature. It's no surprise that gold is hitting historical highs against this backdrop, and Bitcoin has surged to its highest levels since July.

The Federal Reserve has aggressively begun a cycle of monetary easing. The People's Bank of China has launched its largest-scale stimulus since the pandemic. The weakness of the Eurozone's economy is even prompting ECB hawks to consider rate cuts. Widespread monetary policy easing by major central banks creates a favorable environment for risky assets. Moreover, US stocks have surged thanks to the "Goldilocks" scenario—where GDP is slowing but still growing above trend, and inflation is steadily approaching the 2% target.

Meanwhile, the increase in Bitcoin's correlation with US stock indices to the highest levels since 2022 cements investors' intent to buy cryptocurrency. Unlike the S&P 500 and gold, Bitcoin is far from its historical peaks, meaning it doesn't resemble a bubble that could burst at any moment.

S&P 500 and cryptocurrency correlation trends

This image is no longer relevant

This image is no longer relevant

Thus, the combination of widespread monetary expansion, diminished trust in fiat currencies, growing global risk appetite, and bipartisan support for the crypto industry are giving Bitcoin a green light. But can it seize the opportunity? The answer to this question will largely depend on US stock indices, whose correlation with digital assets is rapidly increasing.

Technically, on the daily BTC/USD chart, a broadening wedge pattern has fully formed. We expect a pullback to the 4-5 wave, after which there will be an opportunity to increase the previously opened long positions at 55,420–55,720, 58,000, and 59,000.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD fails to be resilient

Is the US dollar overvalued? Bank of America thinks so. The bank points out that in previous cycles, when the USD Index peaked in the mid-1980s and early 2000s

Marek Petkovich 16:23 2025-04-28 UTC+2

ECB Ready to Cut Rates Further

Officials at the European Central Bank are preparing for further interest rate cuts, anticipating that U.S. tariff policies will inflict serious and prolonged damage on the economy, even

Jakub Novak 09:24 2025-04-28 UTC+2

The Upcoming Week May Be Positive for Markets but Negative for the Dollar and Gold (we expect further growth in CFD contracts for S&P 500 futures and Bitcoin)

The upcoming week will be rich in important economic data releases, which could have a noticeable impact on market dynamics — but will they be able to? Amid the geopolitical

Pati Gani 09:12 2025-04-28 UTC+2

EUR/USD. Weekly Preview. Eurozone Inflation, U.S. GDP, ISM Manufacturing Index, April Nonfarm Payrolls

The upcoming week's economic calendar is packed with important releases. As usual, the beginning of a new month brings significant macroeconomic reports from the U.S. and the Eurozone, typically triggering

Irina Manzenko 06:49 2025-04-28 UTC+2

What to Pay Attention to on April 28? A Breakdown of Fundamental Events for Beginners

No macroeconomic events are scheduled for Monday. If the market barely reacted to macroeconomic data last week, there is nothing to expect on Monday. Of course, Donald Trump could make

Paolo Greco 05:51 2025-04-28 UTC+2

The U.S. Dollar. Weekly Preview

The United States is facing an important week, but it is unlikely to be important for the U.S. dollar. Significant reports on the labor market, job openings, unemployment

Chin Zhao 01:05 2025-04-28 UTC+2

British Pound. Weekly Preview

The British pound is doing even better than the euro. The market keeps finding additional reasons to increase demand for the pound, even when the euro remains stagnant. Therefore, even

Chin Zhao 01:05 2025-04-28 UTC+2

XAU/USD. Analysis and Forecast

Gold maintains a bearish tone today, though it has slightly recovered from the daily low, climbing back above the $3300 level. Investors continue to hope for a potential de-escalation

Irina Yanina 12:23 2025-04-25 UTC+2

The Market Has Nowhere Left to Run

While Donald Trump and Beijing are still trying to figure out whether trade negotiations between the U.S. and China are happening at all, the S&P 500 continues to climb

Marek Petkovich 11:57 2025-04-25 UTC+2

The U.S. Dollar Rises — Here's Why

The U.S. dollar strengthened against a number of global currencies, as did the U.S. stock market, following reports that the Chinese government is considering suspending its 125% tariffs on certain

Jakub Novak 11:31 2025-04-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.