Bitcoin May Have Entered Cyclical Bullish Trend

Goldman Sachs (GS) last week became the first major U.S. bank to trade bitcoin over the counter, and Cowen said it will soon allow institutional clients spot bitcoin trading. Ray Dalio's Bridgewater has also said he is going to make more investments into a crypto fund.

The price of Bitcoin (BTCUSD) jumped on Monday March 28, following a slew of bullish developments for the cryptocurrency, as investors continue to monitor geopolitical fallouts of tit-for-tat financial games and project further developments on their own situations.

Bitcoin extended gains from a late Sunday rally, when the cryptocurrency broke past the key level of $45,000 and erased its losses for 2022. It last traded 6.7% higher at $47,914.35. Earlier in the day it traded above $48,000, for the first time since Dec. 31.

The most capitalized cryptocurrency has been steadily rising since Friday, gaining nearly 7% in that time. Geopolitical uncertainty, inflation, and a serious potential for a recession are giving both retail and institutional investors a reason to build a defensive strategy. Crypto is playing an integral role in that plan.

Despite the U.S. Federal Reserve and seemingly Bank of England are keen to implement monetary austerity to curb the unleashing 70s-style inflation, their efforts may fall short of expectations, because of the escalated geopolitical issues. They point to a prolonged period of high energy and grain prices since Russia and Ukraine play crucial roles in exports and distributions of both. There is no way to substitute the deficiencies – at least in the short run, therefore, it’s likely beyond the world’s most powerful monetary authorities’ abilities to act. Hence inflation-proof havens where Bitcoin plays a special role are now top considerations.

Second, increasing Bitcoin adoption owes a lot to a tectonic shift in the world’s geopolitical security concept. There are emerging discriminations – those kinds that seemed impossible just a decade ago – entailing episodical intolerance to various ethnic origins (think Chinese back in late Trump’s presidency), religion (exodus of the U.S. troops from Afghanistan), and, finally, certain nationalities (Russia-Ukraine war). Other, unaffected so far, nations can no longer peacefully contemplate how sovereign fiat currencies – preemptively, the U.S. dollar – get more and more politically integrated into various restrictions and sanctions, which more and more question their ability to serve as a guaranteed currency benchmark. This notion boosts the worldwide usage of Bitcoin and, arguably, stablecoins.