Bitcoin, the first and most well-known cryptocurrency, has been a subject of intense interest since its emergence in 2009 among investors, economists, and the general public. Its price has undergone sharp and often unpredictable fluctuations, sparking intense debates and speculations about the factors influencing its value. Understanding what exactly affects the price of Bitcoin is key to navigating the world of cryptocurrencies successfully and making informed investment decisions. In this piece, we will examine the main factors shaping the price of Bitcoin and shed light on the complex and multifaceted nature of this digital asset.
31.07.2024
In recent days, the cryptocurrency market has once again been in the spotlight, showing significant fluctuations in the prices of major digital assets. While Bitcoin continues to hold the leading position, its sharp price changes have a significant impact on the entire cryptocurrency ecosystem. The influence of external factors, such as government actions and high-profile statements, has become a catalyst for these changes. Below, we will examine the latest events that have led to noticeable changes in the price of Bitcoin and other leading cryptocurrencies, as well as their implications for investors and traders.
Markus Thielen, founder and CEO of the research company 10x Research, has expressed the view that the future of Bitcoin largely depends on the macroeconomic situation in the United States. According to him, the leading cryptocurrency is currently entering a phase of slow growth, despite pressure on the asset's upward trend. The expert believes that Bitcoin is unlikely to show rapid growth as many had hoped.
Thielen emphasizes that a significant rise in Bitcoin’s price will require macroeconomic support, including a reduction in interest rates by the Federal Reserve or improved inflation data. Important dates for this, in his opinion, will be the Federal Open Market Committee (FOMC) meeting on July 31 and the publication of the Consumer Price Index report in the U.S. on August 14. These events could significantly impact the price of Bitcoin.
From a technical analysis perspective, Bitcoin has been showing a trend of slow decline since early March 2024. Markus Thielen believes that expectations of a sharp increase in price in the near future are unfounded. He also noted that speeches by politicians at the Bitcoin 2024 conference, including Donald Trump's address, did not have a significant impact on the market. The community was hoping for a more noticeable effect; however, according to Thielen, significant growth requires more than just statements from political figures.
Earlier, Markus Thielen had warned about a possible major correction in the cryptocurrency and stock markets, especially for digital assets. His analysis indicates the need to consider macroeconomic factors when forecasting the price dynamics of Bitcoin and other cryptocurrencies.
Furthermore, Thielen points out that, given the current economic instability, investors should be especially cautious. He says that changes in U.S. monetary policy could either support or weaken Bitcoin’s market position. Therefore, he advises closely monitoring macroeconomic indicators and political decisions that could affect the market.
Thielen also noted that, besides macroeconomic factors, other important aspects such as technological innovations and regulatory changes should not be overlooked. These elements also play a significant role in shaping Bitcoin’s price and could influence its future development.
In conclusion, Markus Thielen believes that Bitcoin will require a combination of favorable macroeconomic conditions and positive technological and regulatory changes for significant growth. Investors should be prepared for the fact that the path to growth may be long and require careful monitoring of all influencing factors.
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