Bitcoin (BTC) Price Could Start a Bull Run Soon as G-7 Economic Growth Boosts Risk Appetite

Economic growth in G-7 countries boosts investor confidence in riskier assets like Bitcoin. Expected interest rate cuts from the Fed could increase Bitcoin demand.

Economic growth in the G-7 countries is driving investor confidence in riskier assets, such as Bitcoin, due to the high interest rates. The OECD’s leading indicator, which predicts short-term economic trends, has surpassed 100, indicating strong and accelerating growth in the G-7 economies. This growth is expected to continue in the coming months, boding well for Bitcoin and other risky assets.

The U.S. Bureau of Labor Statistics will soon release its June consumer price index (CPI) report, which is expected to show a 3.1% increase over the past year, down from May’s 3.3% rise. This decrease suggests progress toward the Federal Reserve’s 2% inflation target, which could lead to lower borrowing costs by the end of the year.

Historically, lower interest rates have increased demand for Bitcoin, as seen earlier this year when lower-than-expected CPI reports boosted Bitcoin ETF investments.

Wall Street’s current optimism in the technology sector is another positive sign for Bitcoin. The ratio between the tech-heavy Nasdaq index and the broader S&P 500 has reached record highs, reflecting strong investor confidence in tech stocks. Bitcoin has historically rallied during periods when tech stocks perform well, tying its success to the tech market’s growth.

Concerns about a potential U.S. stock market bubble seem unfounded. According to TS Lombard, U.S. margin debt is growing slower than equity market cap, indicating that market performance is not mainly driven by borrowed money.

Investor positions in both S&P 500 and Nasdaq futures are also close to neutral, suggesting stability in the market.

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