Financial Insights That Matter
See our full XRP forecast here.
Bitcoin Retreats Ahead of Crucial US Data and Trade Developments
While XRP advanced, bitcoin (BTC) succumbed to profit-taking after briefly reclaiming $95,000. A crucial week ahead exposes BTC to US economic data, trade developments, and speculation over the Fed’s rate path, encouraging caution among investors.
Last week, the US BTC-spot ETF market recorded total net inflows of $3,033 million, its largest since launching in January 2024. Easing US-China trade tensions and hopes for trade deals between the US and major economies boosted risk appetite. The Nasdaq Composite Index rallied 6.73% in the week ending April 25, while gold dropped by 0.25% to $3,319. Despite Sunday’s pullback, BTC gained 10.07% in the week.
The Kobeissi Letter remarked on BTC-spot ETF flows and BTC price trends, stating:
“Investors are rushing into Bitcoin: US-listed Bitcoin ETFs recorded $936 million in net inflows on Tuesday, the third-highest this year. Since the April 7 low, Bitcoin prices have surged over 25% and are trading above $94,000. For the first time all year, it appears that Bitcoin has decoupled from risky assets and is now seeing large safe haven-driven demand. Is Bitcoin heading to $100,000+?”
BTC Price Outlook: Key Catalysts Ahead
On April 27, BTC fell 0.99%, adding to Saturday’s 0.04% dip, closing at $93,802.
BTC’s near-term path will likely hinge on trade negotiations, US economic data, and legislative developments.
- Bearish Scenario: Intensifying US-China tensions, a hawkish Fed stance, weak US data, legislative resistance, and ETF outflows.
- Bullish Scenario: Easing trade tensions, a dovish Fed rate path, upbeat US data, pro-crypto legislation, and rising ETF inflows.
One legislative development to watch is the progress of the Bitcoin Act, reintroduced by Senator Cynthia Lummis. The bill proposes that the US government acquire one million BTC over five years, with a 20-year lock-up period. Passage of the bill could drive BTC to fresh record highs.
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