Bitcoin fundamentals set for new records as the Fed faces crunch time

Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead...

View this email in your browser Markets Outlook Bitcoin fundamentals set for new records as the Fed faces crunch time "If inflation expectations fall below our 2 percent objective, interest rates would decline in tandem. In turn, we would have less scope to cut interest rates to boost employment during an economic downturn."  — Jerome Powell Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead. Despite staying on the border of five figures, Bitcoin is showing seriously bullish fundamentals, while troubles on macro markets could provide a further boost. At the same time, a futures gap at $9,600 remains unfilled and resistance close to $11,000 untested. Continue reading to discover five factors that could propel BTC/USD up or down in the coming week. Oil faces its Waterloo A watershed moment for the world as we know it? BP says that world oil demand peaked in 2019, and because of the coronavirus, a recovery is not in the cards for at least 20 years — and it may never come. On the back of April's extreme volatility in oil markets, the latest bad news for the black gold leaves Bitcoin untouched. Going forward, the knock-on effect of slumping demand on oil-producing nations will compound with other macro difficulties to make Bitcoin all the more attractive as a hedge against losses. Fed policy may change once more This week will see another meeting at the Federal Reserve, with potential clues about policy implementation and even new plans being revealed. This, if it involves more meddling in the U.S. economy, would be a boon for safe havens, analysts say. Gold is already betting on a boost, while Bitcoin will also likely benefit from anything that weakens the U.S. dollar currency index, or DXY. For central banks, "unconventional" is normal now. The Fed provides the backdrop to a firm realization across central banks that extreme measures to protect the economy are now the new normal. As one banking analyst told Bloomberg this week, the scale of interventions now overshadows the 2008 financial crisis, and a U-turn seems all but impossible. Bitcoin was born specifically to protect investors against central bank meddling, and continued concerns about how to manage global economies underscore its utility as a hedge against the consequences — inflation, inequality and the erosion of wealth. Records in store for hash rate and difficulty Bitcoin's network fundamentals are set for a clean sweep to all-time highs this week. Its hash rate topped its personal best to hit 135 exahashes per second, while difficulty will climb to its highest ever at the next readjustment in five days' time. Strong fundamentals reinforce the idea that miners are in it for the long term, and a common theory suggests that price follows upticks in hash rate as a matter of course. Tether printing accelerating Tether passing $15 billion in market cap provides the final bullish signal for Bitcoin. Printing USDT has historically given BTC/USD a boost, and the tally has been increasing faster and faster. As one analyst notes this week, the impact of printing always ends in the same bullish scenario. Tether investors, meanwhile, have taken advantage of lower Bitcoin prices, data last week revealed. 1.5 million people follow us on social media Download our official app:

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