Munzir HakimiTable of Contents
Fresh Insights
Bitcoin’s Recent Surge and Market Dynamics
Bitcoin has recently shown remarkable resilience, gaining 11% between April 20 and April 26, reaching around $94,000. This surge was influenced by easing import tariffs from the Trump governance and strong corporate earnings. Notably, there was a record $3.1 billion in net inflows to spot Bitcoin ETFs over five days, boosting investor confidence.
However, a key indicator in BTC derivatives suggests potential bearish momentum. Retail traders favor perpetual futures contracts that closely track the spot market; a negative funding rate indicates stronger selling demand during this bullish phase.
diverging trends: Bitcoin vs Stocks
Despite some correlation with the S&P 500’s recent gains of 7.1%, Bitcoin is increasingly becoming an self-reliant asset class. The current correlation stands at just 29%, considerably lower than previous levels of around 60% seen earlier this month. This shift indicates that while macroeconomic factors still influence sentiment, Bitcoin is not merely acting as a proxy for technology stocks.
The inability of gold to maintain its bullish trend after hitting an all-time high also supports Bitcoin’s status as “digital gold.” as long as BTC remains above $90,000, investor confidence may continue to grow.
Final Thoughts
Key Takeaways Ahead
- heavy liquidations contributed to Bitcoin’s rise.
- A weakening correlation with stocks highlights its independence.
- Institutional investors remain bullish despite retail caution.
Reference
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- Cointelegraph: US Spot Bitcoin ETFs See Record Inflows
- Cointelegraph: how To Use Crypto Correlation For Better Risk management
