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In the last few weeks, Bitcoin has been closely moving in tandem with the US dollar.
President-elect Donald Trump has proposed tariffs to boost domestic manufacturing and reduce reliance on foreign goods. However, similar measures under Trump and Biden fell short, and studies suggest these tariffs could raise consumer costs, fuelling inflation and straining household budgets.
The Federal Reserve’s latest minutes indicate a possible December rate cut, contingent on November employment data. If not in December, a January cut is likely, although we foresee a delicate balance between inflation and growth making monetary policy less clear in the coming 6 months.
Bitcoin's price movements over the past week have been driven by its approach to the significant milestone of $100,000 and uncertain monetary expectations, resulting in notable price volatility. The $100,000 level represents a strong psychological and technical barrier, and significant resistance is expected at this price point.
Ethereum has bucked the trend, recording inflows of over $1 billion in inflows this month. This shift appears driven by improved sentiment surrounding the Beam Chain proposal. Additionally, a sharp increase in futures market activity underscores renewed optimism in what has been the underperformer of the crypto space.
