The Bitcoin Prize continues to perform well even if the world is fighting with a trade war and a lot of geopolitical agitation. Under the hood, two key factors continue to support the ascending market bitcoin: Positive economic growth and abundant liquidity. This is an extremely optimistic basis for Bitcoin.
Never again a recession?
Interestingly, the financial and Wall Street media interpreted each clear drop in the S&P 500 as the start of a recession. The last time we saw that this reaction took place in April, during the war of Donald Trump.
However, on all occasions, the American economy has managed to survive and there was no recession. This almost suggests that financial media are watching the world through a bad goal.
Now we even see that the S&P 500 reaches historic maximums at a time when real interest rates are positive (interest rate higher than inflation). In theory, real interest rates act as a ballast for the economy. Partly because it makes investors more attractive, save in fiduciary money, because it also allows them to beat inflation.
According to Capital Flows, we see that the financial markets work so well because the underlying growth of the economy is iron. Consequently, there is no discrepancy between debt and assets, such as the situation which caused the global financial crisis of 2008.
“We see that everyone realizes that he must invest in keeping the rate of market demand. When you compete with another business, it is a career to hire the best, invest and reach consumers as soon as possible.
In the same way that there are panic sales and companies have reduced spending during recessions, during Bonanza, there is panic for the highest market collection, ”explains Capital Flows.
The following graph shows that commercial investment in the American economy remains solid and even has a slight increase. Partly trained by the stimage around artificial intelligence.
Media threshing immediately resembles something negative, but for the economy, this type of “revolutions” is fantastic. More and more people believe in the potential of artificial intelligence, and people are delighted to release capital for that.
This belief, in the end, triggers the investment, and this can only lead to an economy with new dimensions. In the process, the US government is about to spend even more money. It is clear that Donald Trump wants to avoid a recession at all costs.
And it is very optimistic for the Bitcoin price.
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