🔼Why is Cryptocurrency Rising?

Today Bitcoin broke the $97k level for the first time since February, triggering a rise in the entire market. The S&P 500 index is also recording a 1.29% increase after yesterday's decline.

✔️Main reasons for the rise:

🏦1) Possible interest rate cuts by the Federal Reserve. Yesterday's GDP data showed that the US economy fell to -0.3%. A negative GDP figure for several consecutive quarters increases the likelihood that the Fed will cut rates and save the economy.

🛢2) Falling oil prices. Crude oil prices dropped nearly 18% in April, marking the worst month since the beginning of the pandemic.

💵3) Falling oil prices lead to a decrease in the dollar index, as less is purchased for oil supply payments. A weak dollar stimulates the growth of risk assets.

🪙4) Rising gold prices. This month, Chinese investors have invested in gold ETFs at the fastest pace in history, surpassing the previous record by more than twice. BTC correlates with gold.

However, a new month has begun, where we await new reports and important economic data, especially on inflation. Economists forecast a rise in inflation due to tariffs, which will force the Fed to keep rates at high levels longer.