• Bitcoin price is expected to flip $30,000 as a support floor as expectations of a mid-cycle rally emerge.
  • BTC has surpassed USD as the preferred investment option due to the concerns surrounding US debt.
  • Tether reduced its bank deposits by more than 90% owing to the banking crisis.

Bitcoin price has been fluctuating for the last couple of weeks as the macroeconomic market continues to face challenges. Faith in the US Dollar (USD) continues to wane, and concerns surrounding the impact of the debt ceiling standoff will play an important role in BTC's rise going forward.

Read more - Banks deemed investing indirectly in Bitcoin as faith in USD continues to decline

Confidence in Bitcoin grows amid depreciating macroeconomic conditions

Earlier this week, billionaire investor and hedge fund manager Paul Tudor Jones in an interview with CNBC, stated,

"I'm going to always stick with Bitcoin.

While the statement in itself does not inflict any kind of impact on the price action, it speaks to the larger narrative of crypto being a bubble.

As the founder of one of the biggest investment firms in the United States, Jones’ opinion falls in line with many other institutions that have more faith in Bitcoin than the US Dollar right now. Beyond just investment firms, banks themselves are betting on the digital currency as the banking crisis continues to instill fear among citizens.

As reported last month, the Bank of America and Fidelity Management recently purchased over $85 million worth of MicroStrategy's MSTR shares.

Another recent entry in this club is the issuer of the biggest stablecoin in the world - Tether - which has reduced its bank deposits from $5.3 billion to $481 million in Q1 this year to reduce its bank-risk exposure.

In exchange, the USDT issuer added Gold and Bitcoin to its asset reserves for the first time. These investments account for about 4% and 1.8% of its entire reserves, worth nearly $3.2 billion and $1.45 billion, respectively.

This is because people believe that the best way to circumvent the potential damages from a financial crisis is by leaning in on an inflation hedge asset. Plus, Bitcoin already has earned its safe-haven status since it could offset any potential losses it may bear owing to the macroeconomic conditions, thanks to its rising correlation with Gold. 

As noted in the image below, following the Bitcoin bear market bottom from November 2022, Gold's correlation with BTC has increased. At the same time, its correlation with the stock markets has declined in the last few weeks, while it stands completely uncorrelated with the Dollar Index (DXY).

Bitcoin correlation with Gold on the rise

Bitcoin correlation with Gold on the rise

All these instances are signs that Bitcoin price may witness a rise over the next few months.

Bitcoin price has immense potential 

Going forward, Bitcoin price might make it back above the June 2022 high of $30,000, which also marks a key psychological level. The chances of such a rally are high since the digital asset is still in high demand. 

According to a survey from Bloomberg, BTC has surpassed USD as the preferred asset for investment. This is due to the concerns surrounding the US national debt, as raising the debt ceiling continues to be a matter of discussion. 

This would be a boon for Bitcoin price, which has increased by more than 66% since the beginning of the year and is potentially preparing for a bull market in 2024. According to popular trader Inmortal, the rest of 2023 is set to note a mid-cycle rally. 

This makes $32,000 and $37,800 the next major targets as they coincide with the 23.6% and 38.2% Fibonacci Retracement of $67,300 to $20,288.

BTC/USD 1-day chart

BTC/USD 1-day chart

However, some resistance from bearish broader market cues could impact the potential of Bitcoin price to reach these targets.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP