Bitcoin (BTC) 
$110,521.68 price It is based on 108 thousand dollars and it was not at all as expected. The support at 112 thousand dollars could not be regained and BTC fell below 110 thousand dollars. Despite the ceasefire with China, it is annoying for investors that the markets do not produce the desired results. So what’s the reason for this?
Why Aren’t Cryptocurrencies Rising?
Investors had priced in the temporary ceasefire between the US and China, but the decline came as the agreement was finalized. Mixed earnings reports from technology companies and statements reflecting the Fed’s cautious attitude create a more negative atmosphere than it should. Of course, yesterday’s strong ETF outflows also had an impact on this.
President Donald Trump announced he had a “great meeting” with Chinese leader Xi Jinping. The most important gain in this meeting was that both sides committed to easing export controls and agreed to remove barriers. Of course, the measures that would be put into effect on November 1, the threat of which even shook the markets, were also blocked.
Okay, if everything is fine, why? Is crypto falling? Yesterday’s Meta gains were a surprise. The commodity lost 8.5% as investors questioned whether its massive investment in AI infrastructure would generate sustainable returns. Alphabet, Microsoft earnings were good but fell 2% after Microsoft rose. Alphabet rose 7.7%. The imbalance here caused a deterioration in risk appetite.
In other words, some problems in Meta’s earnings report and the Fed’s statements that “we cannot guarantee this” regarding the continuation of the relaxation were effective in the decline of cryptocurrencies. Even though the balance sheet reduction stopped in December Powell’s The decline in interest rate cut expectations to 60% due to his statements was effective in the decline.
Cryptocurrency Predictions
One of the reasons for the decline was Trump’s statement that he did not discuss with Xi the approval of the sale of Blackwell chips to China. If export restrictions were to be lifted and risk markets were to strengthen while US companies continued to grow, this problem should also be resolved between the two countries. In other words, concerns about the limitedness of the agreement undermine short-term appetite.
But this could be the key to the rise. Thus NVIDIA China’s demanding statements regarding the issue and Trump’s permission to do so increase risk appetite. The fact that we will not see discussions about rare earth elements for a year indicates that today’s negative atmosphere should not continue in the medium term.
In other words, the decline in cryptocurrencies is largely exaggerated and as long as the $107,000 level is maintained, the top of the range, $116,000, can be tested.
