Bitcoin Price Forecast: Transitioning to a Risk-On Asset
Bitcoin trades above $98,000 after a 1% gain, with trends indicating its classification as a risk-on asset. A strong correlation with the S&P 500 has emerged, while its connection to Gold weakens. Upcoming US CPI data may cause volatility, with cautious trading advised. Despite fluctuations, Bitcoin maintains its long-term value narrative.
Bitcoin has continued its recovery, trading above $98,000 after a 1% gain on the previous day. A report from Bitfinex indicates that Bitcoin is increasingly viewed as a risk-on asset rather than simply a store of value. Traders should brace for volatility, particularly with the upcoming US Consumer Price Index (CPI) data release which may impact market sentiment.
In conclusion, Bitcoin is shifting perceptions, being seen more as a risk-on asset in light of recent trends. Its correlation with the S&P 500 remains strong, while its tie to Gold has weakened. The market is cautious as it awaits US CPI data, which could lead to significant volatility. Despite recent price maneuverings within a specific range, Bitcoin’s long-term outlook as a store of value persists amidst regulatory scrutiny and market conditions.
Original Source: www.fxstreet.com
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