Market Analysis by Quasar Elizundia, Expert Research Strategist at Pepperstone
“Bitcoin extends its bullish momentum, ed by increased risk appetite in the cryptocurrency sector, marking three consecutive sessions of gains and heading towards a positive weekly close after three weeks under pressure. Currently, it is trading around $99,000, reinforcing the perception that, despite recent volatility, investors still maintain and interest in crypto assets.
However, signs of caution emerge from the institutional front. This week, Bitcoin ETFs recorded significant outflows, with $364 million withdrawn yesterday and a total of $490 million so far this week. This behavior suggests that some institutional participants prefer to stay on the sidelines amid macroeconomic uncertainty.
A relatively positive factor comes from the derivatives market, where short liquidations far exceed long positions, indicating that traders have closed their bearish exposures after being pressured by the recent rally. Meanwhile, open interest rose 7.2% to reach $35.2 billion, mostly driven by long positions.
On the monetary front, the Federal Reserve’s restrictive stance continues to weigh on Bitcoin’s potential. Recently, FED reaffirmed their intention to keep interest rates in the 4.25%-4.50% range, maintaining pressure on higher-risk assets. This high-rate environment limits the appeal of riskier assets, affecting the performance of Bitcoin and crypto-related stocks.”
- Analysis by Quasar Elizundia, Expert Research Strategist – Pepperstone
