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.
Raoul Pal, CEO of Real Vision and a prominent macro analyst, believes Bitcoin (BTC) is poised for significant breakout rallies, driven primarily by rising global liquidity.
As Bitcoin continues to strengthen its position in the market, BlackRock, a major financial institution, has released an updated report titled “Bitcoin: A Unique Diversifier.”
Federal Reserve meetings usually follow a predictable pattern, but this week’s Federal Open Market Committee (FOMC) gathering was shrouded in uncertainty.
A well-known crypto analyst believes Bitcoin (BTC) is poised to start a major bull run.