The recent decline in the value of Bitcoin has caused a series of indicators that could hint at a proximity to the lowest point of its price. Through a thorough analysis of the economic context and the trends observed in the market, three key signals have been identified that could suggest an eventual reversal in Bitcoin’s bearish trend.
- Uncertainty Regarding Fed Minutes
The most recent meeting of the United States Federal Reserve has raised some uncertainty in financial markets. Investors are awaiting the results that will emerge from the speech of the president of the Fed, Jerome Powell, after the meeting of the monetary council. Concern centers on the ability of the US Treasury Department to fund the government budget, which has led to an increase in the yield on two-year US Treasury bonds. This increase in financial risk has contributed to risk aversion in markets, including the cryptocurrency market.
- Stability of Bitcoin Miners
Despite the recent decline in the price of Bitcoin and the reduction in rewards for miners, the latter maintain a solid stance in their position. Although there has been a decrease in the Hashrate Index, which evaluates the expected daily performance of processing power, miners seem to be reluctant to part with their assets. This resistance could denote underlying confidence in the long-term value of Bitcoin, suggesting that the price correction could be coming to an end.
- Increase in Demand for Stablecoins in China
Demand for stablecoins, particularly USD Coin (USDC), has seen an increase in China in recent weeks. This increase is reflected in the premium in USDC transactions compared to the official US dollar rate. This persistent attention suggests positive sentiment towards cryptocurrencies in China, which could support a recovery in Bitcoin price.
In conclusion, while the recent decline in the price of Bitcoin has raised concerns among investors, these three signs hint that the cryptocurrency could be approaching its lowest point. However, it is important to note that financial markets are inherently volatile and the situation could change rapidly in response to economic and political events.
