Recent analysis from Bitfinex indicates a renewed enthusiasm for high-risk investments.
The report shows that Bitcoin (BTC) is increasingly moving in tandem with U.S. stocks, signaling a return of risk-taking behavior in the crypto market.
Bitfinex attributes the recent BTC rally to a growing correlation with equities and significant short liquidations that have potentially reset the market dynamics.
Notably, $40 million worth of Bitcoin futures and $140 million in other asset pairs were liquidated on August 23, reflecting a drop in market leverage.
Additionally, Bitcoin’s positive reaction to comments from Federal Reserve Chair Jerome Powell about potential interest rate cuts, which pushed its price to $65,000 earlier this week, highlights the market’s increasing risk appetite.
Despite a decrease in leveraged positions, which may support further price gains, Bitcoin often follows the equity markets with a delay.
The current market conditions suggest that Bitcoin could see a delayed upward trend, in line with the broader risk-on sentiment and diminishing market overhang from seized assets and ongoing distributions.
Commerzbank, one of Germany’s largest financial institutions, is making a significant move into cryptocurrency by offering Bitcoin and Ethereum trading services to its corporate clients.
For the first time in 4 years, Fed cut the rates for the first time in 4 years, which lead to a notable surge in cryptocurrency prices.
Donald Trump, the Republican presidential nominee, made headlines by becoming the first former U.S. president to make a Bitcoin transaction.
Under President Nayib Bukele, El Salvador remains committed to its daily Bitcoin acquisition strategy, currently holding assets worth approximately $354.6 million.