price towards 100,000 dollars while the US dollar wobbles

Tech

price towards 100,000 dollars while the US dollar wobbles

Bitcoin is experiencing a strong bull phase, driven by growing concerns about the weakening of the US dollar and the unprecedented interest from financial giants like BlackRock.

Fed under pressure and dollar on the edge

President Donald Trump is putting pressure on the Federal Reserve to reduce interest rates, while Fed Chairman Jerome Powell has so far maintained an aggressive approach against inflation. Nevertheless, signals of a bull turn are emerging strongly.

According to the analysts at Deutsche Bank, led by George Saravelos and Tim Baker, the conditions for a bear cycle of the dollar are now ripe.

Influencing the situation would also be a profound change in the commercial policy of the United States and a redefinition of their global geopolitical role.

Experts have stated that “in a world of extreme uncertainty and rapid changes in political norms, the risk of market dislocations and regime shifts remains high.” In other words, the loss of strength of the dollar does not seem to be a temporary phenomenon, but rather the beginning of a deeper historical phase.

Bitcoin as a refuge in geopolitical fragmentation

With the prospect of a weakened dollar, interest grows for resilient value alternatives like Bitcoin. Jay Jacobs, head of themes and active funds at BlackRock, emphasized how “geopolitical fragmentation” is emerging as a “megaforce” set to shape the global economy for decades to come.

Jacobs also highlighted that Bitcoin is progressively decoupling from tech stocks, behaving increasingly like a “non-correlated” asset and, therefore, particularly appealing in a context of global turmoil.

This context can further fuel the demand for bitcoin, considered by many – now including BlackRock – as “digital gold” and a safe haven against monetary and geopolitical instability.

The decisive push of BlackRocks Bitcoin ETFs

The influence of BlackRock in the cryptocurrency market became concrete in January 2024, with the approval of their spot Bitcoin ETF, named IBIT. This step represents a historic turning point for the integration of Bitcoin into traditional financial markets.

Larry Fink, CEO of BlackRock, has made a complete reversal from his past positions, acknowledging that Bitcoin is no longer just a “money laundering index” but a legitimate asset and a cornerstone of the digital revolution.

This new vision fits into a much broader project: to create a blockchain-based alternative to the US dollar, an initiative that, if completed, could radically change the current global financial system.

Analysts see Bitcoin ready to rise further

With the erosion of the dollars value and a growing geopolitical misalignment, the price of Bitcoin has already shown strong bull signals, approaching 100,000 dollars.

According to a highly followed crypto investor (not specified in the source), a “market reversal” is occurring and now would be “the time to buy everything” before the start of what is expected to be a new parabolic growth phase for Bitcoin.

Furthermore, according to the head of FX at Goldman Sachs, recently highlighted, the weakness of the dollar is “here to stay,” further strengthening the bull narrative for cryptocurrencies.

Systemic Breakdowns and New Opportunities

The combination of:

• a more protectionist trade policy,
• an erosion of confidence towards the dollar,
• the affirmation of the blockchain as a new financial architecture,

creates a fertile ground for a “megaforce geopolitical fragmentation shock,” as defined by analysts. In this scenario, Bitcoin emerges as one of the few assets perceived as safe and independent.

Institutional investors are rapidly recognizing this reality, accelerating a trend of adoption that, until a few years ago, seemed distant.

A future yet to be written

The year 2024 is shaping up to be a year of historic change for Bitcoin and the entire global financial system. The convergence of monetary policy, geopolitical turmoil, and technological innovation is redefining the boundaries of value and trust.

Investors will need to move carefully, aware that, in times of great uncertainty, opportunities multiply for those who can read the weak signs of change early.

Bitcoin is already on the road to new highs. But, as always, time will confirm if the digital metal will really be able to hold its own against the entire fiat economic system.