Copper, recognized as a reliable economic indicator for decades, approaches the highest record.
Experienced cryptographic merchants can remember the periods when Bitcoin (BTC) and copper exhibited a strong positive correlation and can quickly draw bullish conclusions from the recent rally in the red metal. If that is not enough, the best BTC years have been characterized by a rally in the copper-organ relationship, which is beginning to increase.
However, the last copper rally is driven by factors other than the positive signals of the global economy, which guarantees caution when seeing it as an upward indicator for risk assets, including BTC.
According to ING, the 12% increase to $ 5.10 per Libra de Copper in Camex has been mainly driven by the commercial rates of President Donald Trump, which represent risks for both US and global economies. These aggressive policy movements probably led the Federal Reserve to reduce growth forecasts while increasing inflation projections this week.
This is because the manifestation in copper is mainly directed by the aggressive commercial tariffs of President Donald Trump, who represent a risk to the United States and the global economy.
“Copper has increased around 12% so far this year, mainly driven by uncertainty about Trump’s commercial policies. It is likely that rates news continues to dictate the price address in the coming months,” ING analysts said in a note to customers on March 18.
The not -so -agitated nature of the ongoing copper rally is also explained by side losses that are negotiated in the Australian exchange rate in US dollars.
Australia is the seventh largest copper producer in the world and the third largest copper exporter. As such, Aud and Copper prices have historically presented a correlation coefficient of more than 0.80. But it does not work this time, probably due to the increase in copper led by tariffs.
Do not forget China’s recent stimulus
The other factors that drive copper rally, such as China’s recent stimulus, could be positive for Bitcoin and assume risks in general. China, the world factory, is the largest importer of basic products.
Earlier this week, Beijing announced its most powerful plan in decades to boost domestic consumption, since it fights the external uncertainties raised by Trump’s rates. The plan observed a direct link between consumption, affordable child care and the country’s long -term property crisis.
“The policy package includes efforts to increase household income, stimulation spending and support population growth. New data were also published during the first two months of the year that show Chinese consumption, investment and industrial production that exceeds estimates,” Ing analysts said, explaining the increase in copper prices this week.
