The biggest cryptocurrency Bitcoin (BTC) $104,723.9broke the record by exceeding 106 thousand dollars during the Asian session. Short position liquidations totaling $151 million in the last 12 hours supported the upward movement of the price. The weekend’s low liquidity and negative funding rates on Deribit triggered an upward break in the market and short positions were put under pressure.
BTC/Gold Ratio Broke a Record
Bitcoin precious metal goldThe BTC/Gold ratio, which expresses its value against gold, reached an all-time high during this movement. This development strengthened Bitcoin’s position as “digital gold” and further cemented its position as a preferred store of value to traditional gold. According to QCP Capital analysts, this unprecedented increase is evidence of the market’s long-term confidence in Bitcoin.
BTCThe increasing interest of companies in Bitcoin also plays a role in the increase in the market value of . Especially MicroStrategy‘s inclusion in the Nasdaq 100 index created a positive atmosphere in the cryptocurrency market. Founder of the company Michael Saylorsignaled that they could make new purchases even if the price of Bitcoin is over 100 thousand dollars. This is important as it will increase passive funds’ interest in MicroStrategy shares and make it easier for the company to raise more funds for Bitcoin.
The Central Banks’ Agenda Was Overshadowed
On the other hand QCP Capital Analysts do not expect this week’s central bank meetings to have a significant impact on Bitcoin’s price movements. According to analysts, the market is currently driven entirely by emotion. But an unexpectedly stimulating US Federal Reserve (Fed) policy and the Fed President Jerome PowellA soft approach from may further contribute to Bitcoin’s upward movement.
Analysts point out that Bitcoin has recently appeared more independent from movements in traditional markets. It is predicted that the market will move entirely based on the balance of supply and demand in the coming weeks. As Bitcoin prepares to enter the new year, it seems poised to move its historical peaks even higher.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
