The key takeaways
- US Government bail out plans with UAE, as well as currency exchange lines are relieving global liquidity worries and decreasing credit crisis risks.
- Record Bitcoin ETF investments and increasing BTC miner profit suggest a strong bullish movement despite the war in Iran.
Bitcoin (BTC), Ether, and the overall cryptocurrency market reached an 11-week peak on Wednesday. Bitcoin (BTC), reached $79,000 while Ether (ETH) hit $2,400. Investors gained confidence that the immediate recession risk in the US was fading despite high oil prices due to war with Iran.
Now traders weigh whether Bitcoin or Ether is headed for more gains, or if an imminent short-term corrective move will be made given the persistent economic recession risks.
Nasdaq100 futures, (left) and total cryptomarket capitalization (right), USD. Source: TradingView
On Wednesday, the Nasdaq 100 index, which is heavily influenced by technology companies like Tesla (TSLA), reached a new record as investors awaited Tesla’s quarterly results. Brent crude oil prices jumped 9% within two days, after news reports claimed that Iran was targeting two vessels near the Strait of Hormuz. Energy costs are rising, which increases the probability of an economic stimulus. This provides a temporary cushion for risky assets.
US liquidity plans, Bitcoin ETFs could offset recession fears
US President Donald Trump has reportedly been spotted. stated CNBC conducted an interview with a woman who said, “I was very surprised to hear that she had been able to do this.” “the federal government should help” Spirit Airlines has twice filed for bankruptcy since 2025. The Trump administration has previously invested in chipmaker Intel, utility Southern Company and L3Harris.
US Treasury Secretary Scott Bessent says that the US Treasury has eased concerns about liquidity by extending credit to private companies. US Treasury secretary Scott Bessent noted Both the United States and United Arab Emirates will benefit Wednesday from a currency exchange line designed to “maintain order in the dollar funding markets.”
Amid the decline in oil revenues and the disruptions along the Strait of Hormuz, US allies face pressure to sell US debt to raise funds for local defence, imports and liquidity. Currency swaps could ease the dollar shortage, and prevent a rise in US Treasury yields. Overall, the impact is lower borrowing costs as well as a decreased risk of an instant credit crisis.
The US stock market has seen six days in a row of significant inflows. Bitcoin exchange-traded funds This is likely due to the fact that ETFs totaling more than $1.54 billion have increased sentiment. Morgan Stanley Bitcoin Trust’s (MSBT US) successful launch, which achieved $145 million of total net assets within three weeks has improved Bitcoin’s perception of risk despite the global economic uncertainty.
US-listed Bitcoin ETFs net daily flows in USD. Source: SoSoValue
Related: Bitcoin inflows to Binance fall to 2023 low as BTC bulls set target on $80K
Short-term pressure on Bitcoin prices eased by profitability of bitcoin miners
According to Luxor Hashprice Index, as Bitcoin prices approached $79,000, the miner’s profitability reached its highest levels since January.
Source: HashRateIndex. Bitcoin miner expected daily earnings per terahash in USD. HashRateIndex is a source of data.
Recently, the mining industry has gained attention. sold significant Bitcoin holdings To fund investment in data centres and AI infrastructure. MARA Holdings, Riot Platforms, Core Scientific and Cango are examples. Although higher profitability is not a guarantee of reduced pressure on miners to sell, the upward momentum provides an incentive for investors.
The war in Iran, and the tech earnings, are still crucial for traders’ sentiment.
Bitcoin and Ether are expected to continue their growth as the US Government signals it will use stimulus measures to address liquidity concerns and credit issues.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
