Bitcoin and other cryptocurrencies rallied again today, while stocks and other more traditional assets continue to struggle amid growing concerns over inflation and the potential stagflation
. The digital currency has surged to $55K, a day after finally taking out the $50K hurdle on a closing basis. Will it now go on to make a new record high?
That’s the million dollar question. But Bitcoin’s rally has been very impressive in the face of China’s ongoing crackdown and stronger dollar, as well as growing macro concerns over inflation and the potential for weaker growth and so on.
With Bitcoin holding reclaiming $50K and able to rise in the face of the above macro factors, I wouldn’t bet against it climbing to a new record high now – but it will face some potential resistance from this shaded area, where the previous drop had taken place:
Source: ThinkMarkets and TradingView.com
Bitcoin is possibly being seen a tool to hedge against inflation, a safe-haven asset, which, unlike gold, will be independent of central bank control.
Investors are hopeful that more countries will adopt cryptos over time, and that China might eventually have second thoughts about digital currencies when it has become more established.
It looks like some are betting that Brazil might be the next country after El Salvador to embrace bitcoin as legal tender. If so, it would be a monumental moment in terms of adoption of the digital currency given that Brazil is the 12th largest economy in the world, with a huge population of over 200 million people.
A cryptocurrency regulation bill is expected to be presented to the Plenary of the Chamber of Deputies this week. If successful, it would mean Brazilians will be able to use Bitcoin for their everyday purchases of goods and services.
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