Bitcoin has recently shown impressive growth, reaching new highs faster than many experts expected. Mass liquidations and a decrease in correlation with stocks contributed to this growth.
Restoration of confidence and strengthening of the price
Net inflows into the Bitcoin ETF amounted to an impressive $3.1 billion in just five days. Retail traders are also showing interest in perpetual futures, which further supports the price growth. However, despite the optimism of institutional investors, retail traders remain cautious.
Negative funding rates, which have increased sharply, indicate strong demand from sellers. However, the overall trend in the market remains positive.
Correlation with other assets
Interestingly, Bitcoin’s correlation with the S&P 500 index has decreased to 29%. This highlights Bitcoin’s growing independence from traditional stock markets. Gold also failed to sustain its bullish momentum, further highlighting Bitcoin’s uniqueness as an asset.
Demand for Leverage
There is a growing demand for bearish leverage in perpetual futures, but this does not match the sentiment of professional traders. Monthly futures contracts help avoid fluctuations in funding rates, which also contributes to market stability.
The Future of Bitcoin
Institutional accumulation of Bitcoin could push its price above $100,000. However, it is important to remember that investing in cryptocurrencies always involves risks, and careful market research and analysis should be done before making decisions.
This news is for general information purposes only and does not constitute legal or investment advice.
