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Data Indicates That, Despite The Turmoil In The World Economy, Bitcoin Might Reach $40,000

2023-11-08 15:16:20

During the previous two weeks, the price of Bitcoin has been moving in a constrained 4.5% range, suggesting a level of stabilization of about $34,700. 


Source: www.vectorstock.com


Though BTC prices have remained unchanged, the 24.2% increase since October 7th has restored trust due to the approaching impact of the 2024 halving as well as the possible acceptance of a spot Bitcoin exchange-traded fund (ETF) in the US.


Investors Are Concerned About The Gloomy Prognosis For The Economy

The U.S. Federal Reserve maintains its benchmark interest rate above 5.25% to control inflation, and bears anticipate additional macroeconomic information pointing to a worldwide economic decline. For example, as of November 6, exports from China decreased 6.4% from October of the previous year. 

Additionally, on November 7, Germany announced that manufacturing output in October had decreased by 1.4% from the previous month. Considering the possibility of supply reductions from the largest oil producers, WTI oil prices have fallen under $78 for the inaugural time since late July due to the lower worldwide economic activity. President of the US Federal Reserve Bank of Minneapolis Neel Kashkari's comments on November 6th struck a pessimistic tone that sparked a flight-to-quality reaction.

Due to speculators' flight to the U.S. Treasurys, the yield on the 10-year note fell to 4.55%, its lowest point in six weeks. Strangely, amid a worldwide downturn in the economy, the S&P 500 market index has risen to 4,383 points, which is the most in over seven weeks. This phenomenon can be explained by the $2.6 trillion in financial instruments held by the S&P 500 companies collectively, which provides some security while interest rates are still high. The stock market offers both exclusivity and a yield on dividends, which aligns with investor desires in times of volatility, even as the popularity of big names in technology is growing.

At $16.3 billion, the open appetite for Bitcoin futures has risen to the greatest level since April 2022. As some of the exchanges maintain their spot as the second-biggest marketplace for Bitcoin futures, this milestone becomes even more significant.


Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.


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