"Weekend peace talks truly determine fate" Bitcoin prepares to rise, breaking through sticky inflation fears

▲ "Weekend peace talks truly determine fate" Bitcoin prepares to rise, breaking through sticky inflation fears/AI generated image

Amidst the mixed close of the New York stock market due to inflation shock and geopolitical tensions, the virtual asset market, led by flagship Bitcoin, is steadfastly maintaining an upward trend, showing strong resilience. While traditional financial markets are filled with deep anticipation ahead of the crucial US-Iran peace talks to be held in Pakistan, funds mixed with risk aversion and expectations are steadily flowing into the coin market.

According to CoinMarketCap, a cryptocurrency market aggregation site, on April 11 (Korean time), as of 7:53 AM, Bitcoin (BTC) was trading at $72,885.31, up 0.80% from 24 hours ago, testing a break above $73,000. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also led the market's rise, increasing by 1.53% to $2,242.73. In contrast, altcoins showed mixed performance, with XRP (Ripple) trading sideways, down 0.01% at $1.35, and Solana (SOL) down 0.40% at $84.79. The total virtual asset market capitalization increased by 0.41% to $2.47 trillion, and the Fear & Greed Index indicated a neutral state at 50.

Overnight, the New York stock market showed an unstable closing, with the Dow Jones Industrial Average and the S&P 500 index falling due to the shock of the March Consumer Price Index. Inflation, which surged 0.9% month-over-month due to high oil prices, and the University of Michigan Consumer Sentiment Index, which plummeted to its lowest level in 74 years, fueled concerns about entrenched inflation, complicating the Federal Reserve's monetary policy calculations.

Nevertheless, the reason the virtual asset market overcame selling pressure and rose slightly is attributed to the fact that macroeconomic uncertainty actually highlighted the appeal of decentralized assets as an alternative investment. In a situation where numerous negative factors, such as extreme inflation and continued Israeli airstrikes on Lebanon, are prevalent, investors are maintaining positions in the 24-hour virtual asset market instead of the stock market, which closes for the weekend, showing a move to hedge against macroeconomic risks.

Now, the eyes of investors worldwide are on the US-Iran peace talks scheduled for the 11th in Islamabad. With US President Donald Trump having escalated military and economic pressure on Iran, stating that he is "loaded with the best weapons," the outcome of this weekend's negotiations is expected to be a major turning point that will determine the direction of the suppressed risk asset market.

Market experts predict that if negotiations with Iran are dramatically concluded, suppressed liquidity could explode, opening the door for a strong Bitcoin rally towards its previous highs. However, if the negotiations fail or geopolitical conflicts in the Middle East intensify again, there is a high risk of heavy sell-offs breaking through the thin order books of the virtual asset market over the weekend, requiring a more cautious approach than ever, closely monitoring news flows.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*