Bitfinex Report: Bitcoin to Consolidate amid Declining Volatility

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ODAILY
01-27
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Odaily reports that on January 20th, driven by the optimistic sentiment surrounding President Trump's inauguration and the expectation of more crypto-friendly policies in the US, the price of Bitcoin reached a new high of $109,590. Expectations of measures such as strategic Bitcoin reserve and increased regulatory transparency have stimulated speculative buying. However, Bitcoin was unable to maintain its momentum, retreating below the previous record high of $108,100, and is currently trading below $100,000. The correlation between Bitcoin and the S&P 500 and Nasdaq indices has reached a new high so far this year, highlighting Bitcoin's evolving status as a major risk asset. However, despite the S&P 500 index reaching new highs last week, Bitcoin remains susceptible to news agendas, liquidity, and speculation. Similar to some other stock markets, Bitcoin reacted cautiously after the Bank of Japan's rate hike last week and continues to be closely correlated with the stock market.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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