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What is Next After Bitcoin at $118,000

What is Next After Bitcoin at $118,000

When Bitcoin (BTC-USD) last imploded in 2022, panicked investors never would have guessed its record pricing today. Last week, BTC topped $118,000. Why?

First, the White House’s increased determination to collect more from tariffs is hurting the dollar. The U.S. dollar (UUP) strength requires that trade partners agree to it. But Canada, Mexico, the European Union, and Japan are not likely to agree to the high rates.

China accepted a lower tariff rate of 30%, down from 125%. However, once it adds 10% baseline tariffs, it increases costs for American consumers.

To diversify from the drama surrounding the U.S. currency, investors flocked to Bitcoin. The government also legitimized stablecoins. This led to shares of Coinbase (COIN) and Circle (CRCL) surging to fresh yearly highs.

Bitcoin might abruptly fall by 5% or more on any trade war news. It is just as likely to march higher. Long-term investors do not need to do anything as volatility increases. Bitcoin is the leading cryptocurrency to facilitate trade.

Crypto markets might see lesser-followed coins like TrumpCoin or lif3 rise or fall. However, BTC will have better daily trading volume. Its strong liquidity suggests that even Ethereum (ETH-USD) is a less attractive holding.

The odds are high that BTC will continue to rise over the long term. As U.S. interest rates fall, selling pressure on its currency rises, helping BTC prices strengthen.