Heres Why Bitcoins Price Surged Today
The report also highlights growing doubts among investors about the Federal Reserves ability to remain independent, particularly amid political pressure.
According to Markus Thielen, head of research at the firm, a 0.7% decline in the dollar index against the euro and a 2% increase in gold prices played a key role in Bitcoins rally.
Thielen pointed to political developmentsnamely former President Trumps reported efforts to replace Fed Chair Jerome Powellas a spark for these market shifts. This, he said, rattled confidence in the Feds autonomy and pushed investors toward alternative stores of value like gold and Bitcoin.
While some traders are watching negotiations between the U.S. and Japan, Thielen believes concerns over central bank independence remain the dominant narrative driving the price action.
On the technical side, Thielen also noted that Bitcoin has broken out of a descending channel that mirrors a typical Falling Wedge formationa structure often seen as bullish. He explained that these patterns are marked by declining volume inside the wedge, followed by a surge when the breakout occurs, signaling a shift in momentum.
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