#BinanceAlphaAlert #SaylorBTCPurchase
The price of Bitcoin surged sharply in the past few days, exceeding $97,000, after a long period of decline, with investors shying away from high-risk assets and widely seeking safe havens due to rising trade tensions.
Concerns among investors about a recession in the U.S. economy due to the protectionist trade policies of President Donald Trump and the high tariffs imposed on major trading partners of the United States have led to a strong wave of volatility in the cryptocurrency market.
So far, expectations remain varied amid uncertainty regarding the direction of monetary policy in the United States as well as trade policies.
Some analysts see Bitcoin as a hedge against market volatility and that it has become a safe haven during times of turmoil, as Standard Chartered analyst Jeff Kendrick stated that the decline in Bitcoin's price at the beginning of the year will pave the way for a new rise to record levels in the second quarter.
He predicted that Bitcoin would reach its highest record in the coming months, with signs indicating that Bitcoin could reach $120,000.
The head of global digital asset research wrote: "While it is difficult to pinpoint the timing of sharp rises in the world's most famous digital currency, we believe that the current period of potential strategic asset reallocation away from U.S. assets could lead to the next such rise."
He added that Bitcoin is likely to reach a historic high in the second quarter, with further increases expected during the summer, emphasizing his end-of-year forecast of $200,000.
Analysts' forecasts indicated that Bitcoin would rise to unprecedented levels as soon as Donald Trump took office as President of the United States, and indeed Bitcoin approached the $109,000 level in January before retreating due to Trump's tariffs.
Analysts believe that the continuation of trade tensions will lead to a growing sense of uncertainty, and thus investors will seek unconventional safe havens, including digital currencies.
The appeal of Bitcoin will also increase as investor confidence in traditional safe-haven instruments, including the U.S. dollar and treasury bonds, declines due to the escalation of the trade war and pressures on the independence of the U.S. Federal Reserve.
It is noted that Bitcoin rose by about 24% since the U.S. President announced the postponement of tariffs last April, surpassing the performance of technology company stocks, indicating that American investors are trying to hedge against local risks by purchasing digital assets that are not subject to U.S. control.
Market whales intensified their purchases of the digital currency during the downturn, increasing the chances of Bitcoin rising in the upcoming period.
In contrast, some analysts see the current rise in Bitcoin's price as temporary, and it is likely that the currency will drop again if trade talks between the United States and its major trading partners fail.
They noted that Bitcoin recorded a strong rise in the past few days, supported by news of the start of talks between the U.S. administration and China, amid hopes for a trade agreement between the two largest economies in the world.
They explained that if these negotiations fail and trade tensions arise again, Bitcoin and other high-risk assets will likely drop.