Bitcoin (BTC) reached a two-month peak on September 28, nearing the crucial $66,000 threshold.
This surge coincided with the S&P 500 hitting an all-time high on September 26, driven by robust economic data.
Despite this upward trend, analysts caution that Bitcoin’s current position does not signify a lasting bull market. Investor wariness persists due to past struggles at the $70,000 level and ongoing recession fears that could impact risk-sensitive assets like cryptocurrencies.
While these concerns do not necessarily trigger a mass sell-off, they create an environment where bearish sentiments can thrive, curtailing Bitcoin’s potential for further gains. Additionally, gains in the stock market don’t guarantee similar increases for Bitcoin.
Some analysts point to central bank policies as indicators of economic instability but highlight that major tech firms, such as Google and Amazon, remain robust with solid profit margins and balance sheets. In contrast, Bitcoin’s underlying influences differ; historically, during times of recession anxiety, investors gravitate towards safer assets like gold or government bonds.
Recent data indicates a lack of retail interest in Bitcoin. On September 28, the Coinbase mobile app was ranked 385th, showing only minor improvement since mid-September despite Bitcoin’s 20% increase over three weeks. Furthermore, the Chinese stablecoin market exhibits bearish trends, with USDT trading below parity for two weeks.
In the Bitcoin futures market, institutional traders are adopting a cautious approach, with premiums stabilizing around 6%, indicating a lack of strong conviction. This volatility suggests that the recent price rally for BTC may not be sustainable.
Charles Edwards, founder and CEO of Capriole Investments, has offered a fresh perspective on Bitcoin’s stalled price movement near the $100,000 mark, despite growing institutional enthusiasm.
Metaplanet has expanded its Bitcoin treasury with a new acquisition of 1,005 BTC valued at approximately $108.1 million, further cementing its status as one of the largest corporate holders of the digital asset.
Despite common fears that global crises spell disaster for crypto markets, new data from Binance Research suggests the opposite may be true — at least for Bitcoin.
A new report by crypto analytics firm Alphractal reveals that Bitcoin miners are facing some of the lowest profitability levels in over a decade — yet have shown little sign of capitulation.