By Samir Al Khoury,
How has Bitcoin performed since the beginning of the year until today?
The price of Bitcoin has increased by about 40% since the beginning of the year to date and is currently trading near the $59,000 levels, outperforming the Nasdaq 100 (up about 21%), the S&P 500 (up about 17%), and gold (up about 14%). Despite this, Bitcoin is still recording a level below the record level it recorded on March 14, 2024, which amounted to $73,794.
What are the most important factors affecting Bitcoin’s performance in the next stage?
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Dot plot expectations indicate a reduction in US interest rates by 25 basis points this year. As for the markets, they currently expect the possibility that the Federal Reserve will reduce interest rates twice this year, which may have a positive impact on cryptocurrencies, specifically Bitcoin, which is denominated in US dollars. When the US dollar index declines, the attractiveness of Bitcoin increases for investors and thus their appetite for buying increases.
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Large institutions continue to increase Bitcoin in their portfolios, even if in small proportions, for diversification due to strong optimism within the industry.
What are the most prominent expectations for Bitcoin’s path by some major financial institutions?
Standard Chartered Bank expects the price of Bitcoin to reach $100,000 by the US elections in November 2024, adding that the victory of former US President Donald Trump will serve as a positive incentive for Bitcoin.
It is likely to surpass its all-time highs this year, according to a report by data and research firm CC Data.
What is the technical picture of Bitcoin?
Bitcoin price has been trading within a horizontal range since June 24, 2024, until today, within the levels of $57,885 and $63,794, in addition to it also trading between a 200-day moving average, which stands at $58,489, and a 50-day moving average, which stands at $66,241. The biggest challenge lies in reaching the resistance level, i.e., the 50-day moving average.
As for the Relative Strength Index (RSI), it currently records 32 points and is approaching the Oversold Zone, which indicates bearish momentum for Bitcoin.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.
Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.
Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.
Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.
Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.
Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.
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