In short: Crypto markets intelligence platform Santiment has predicted Bitcoin has some promising rise potential, despite the Federal Reserve increasing the benchmark interest rate by 25 basis points last week. The company reported Bitcoin's reaction to the rate hike was modest and contrasts with previous similar Federal Reserve decisions in 2022 which have driven Bitcoin and equities to multi-year lows. Additionally, the correlation between Bitcoin and equities is fading, while its correlation with gold is increasing, presenting it as a possible non-sovereign, safe-haven asset.
Quick analysis:
The bulls are back! Santiment, the crypto markets intelligence platform, has a positive outlook on Bitcoin after the Federal Reserve increased its benchmark interest rate. In a new report, they claim that the leading cryptocurrency is showing "promising rise potential," with its correlation to equities continuing to weaken.
So, what's next for Bitcoin? The initial reaction to the rate decision was one of relief, and Bitcoin has surged a modest 2% since Wednesday's announcement. Santiment also notes increased trading volume across top market cap assets and no extreme shorts across the board. Even Binance Coin, which has been under scrutiny from US regulators, has seen reduced shorting.
Wednesday registered the highest Bitcoin address trading activity in two weeks, further indication that the bulls are back on the scene. The correlation between Bitcoin and equities is weakening, with Bitcoin's response to the rate hikes contrasting sharply to the multi-year lows seen last year.
It's also interesting to note that Bitcoin's correlation to gold is surging while its correlation to equities is plummeting. Bitcoin and gold are seen as non-sovereign, safe-haven assets that are immune to fiat currency debasement and protected from the modern banking system's ills.
All in all, it's excellent news for crypto enthusiasts that Bitcoin is showing promising rise potential after the Fed rate decision. With volatility continuing to dominate, Bitcoin may be the go-to asset for anyone seeking some respite from the central banks' activities.
Disclaimer: Our articles are NOT financial advice, we are not financial advisors. All investments are your own decisions. Please conduct your own research and seek advice from a licensed financial advisor.
Quick analysis:
The bulls are back! Santiment, the crypto markets intelligence platform, has a positive outlook on Bitcoin after the Federal Reserve increased its benchmark interest rate. In a new report, they claim that the leading cryptocurrency is showing "promising rise potential," with its correlation to equities continuing to weaken.
So, what's next for Bitcoin? The initial reaction to the rate decision was one of relief, and Bitcoin has surged a modest 2% since Wednesday's announcement. Santiment also notes increased trading volume across top market cap assets and no extreme shorts across the board. Even Binance Coin, which has been under scrutiny from US regulators, has seen reduced shorting.
Wednesday registered the highest Bitcoin address trading activity in two weeks, further indication that the bulls are back on the scene. The correlation between Bitcoin and equities is weakening, with Bitcoin's response to the rate hikes contrasting sharply to the multi-year lows seen last year.
It's also interesting to note that Bitcoin's correlation to gold is surging while its correlation to equities is plummeting. Bitcoin and gold are seen as non-sovereign, safe-haven assets that are immune to fiat currency debasement and protected from the modern banking system's ills.
All in all, it's excellent news for crypto enthusiasts that Bitcoin is showing promising rise potential after the Fed rate decision. With volatility continuing to dominate, Bitcoin may be the go-to asset for anyone seeking some respite from the central banks' activities.
Disclaimer: Our articles are NOT financial advice, we are not financial advisors. All investments are your own decisions. Please conduct your own research and seek advice from a licensed financial advisor.
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