Bitcoin price finally pushed through the $45,000 resistance zone, and futures data suggests that bulls will press BTC higher.
Bitcoin surpassed $45,000 on Feb. 8, reaching the price level for the first time since Jan. 12 after rallying 6% in two days. This movement coincided with the S&P 500 reaching a record high on Feb. 7, indicating that investors sought protection from inflation. In addition to crypto and stocks rallying to new highs, Bitcoin (BTC) derivatives data show there’s room for further bullish momentum.
The United States government debt currently stands at a historical high of $34.2 trillion. Some analysts and economists argue that the absolute number matters less than the interest paid, but U.S. Federal Reserve Chair Jerome Powell admitted to the long-term “unsustainable fiscal path” in a Feb. 4 interview.
This situation provides a strong incentive for the Fed to cut interest rates from the current 5.25% throughout 2024, which is the base case and aligned with market expectations. When returns on fixed-income investments are reduced, investors tend to seek refuge in stocks and commodities.
