Copper, recognized as a reliable economic indicator for decades, is approaching record summits.
Seasoned crypto merchants can remember periods when Bitcoin (BTC) and copper have shown strong positive correlation and can quickly draw bulls from the recent gathering in red metal. If that is not enough, the best years of BTC have been characterized by a gathering in the copper-gold ratio, which is starting to increase.
However, the last copper gathering is motivated by factors other than positive indices of the global economy, guaranteeing caution while considering it as an optimistic indicator of risk assets, including BTC.
According to ING, the increase in the year at the start of copper from 12% to $ 5.10 The book on Comex was mainly motivated by the trade rates of President Donald Trump, which present risks for American and global economies. These aggressive policy movements have probably led the federal reserve to reduce growth forecasts while increasing inflation projections this week.
Indeed, the copper rally is mainly directed by the aggressive aggressive prices of President Donald Trump, which present a risk for the United States and the world economy.
“Copper has increased by around 12% so far this year, mainly motivated by uncertainty about Trump’s trade policies. The new tariffs should continue to dictate the price department in the coming months,” ING analysts said in a note to customers on March 18.
Nature not if to-bull of the current copper rally is also explained by side negotiation losses in the exchange rate of the Australian Australian dollar.
Australia is the global 7th producer of copper and the 3rd largest copper exporter. As such, AUD and Copper prices have historically owned a correlation coefficient of more than 0.80. But this does not work this time, probably due to the overvoltage led by copper rates.
Do not forget the recent stimulus of China
The other factors supplying copper rally, such as the recent stimulus of China, could be positive for bitcoin and risk taking in general. China, the world factory, is the largest importer of raw materials.
At the beginning of this week, Beijing announced its most powerful plan for decades to stimulate domestic consumption when it fights against external uncertainties posed by Trump’s prices. The plan noted a direct link between consumption, affordable childcare services and the country’s long -standing real estate crisis.
“The policy package includes efforts to increase household revenues, spikes’ spending and supporting demographic growth. New data has also been published during the first two months of the year showing that Chinese consumption, investment and industrial production exceeding estimates,” noted ingenuous analysts, explaining the increase in copper prices of this week.
