- Bitcoin hits $31,000, highest level since July
- Michael Saylor’s MicroStrategy Bitcoin Position Turns Positive ($29,582 Average Purchase Price)
- Major reversal in bond market yields keeps cryptos largely supported (Eth up 3.4%, Solana up 2.4% and Dogecoin up 4.9%)
Bitcoin is rallying alongside tech stocks as the bond market experiences a major reversal. Today’s rally that took prices to a three-month high is not due to optimism in spot Bitcoin ETFs, but to a significant reversal in the dollar and the 10-year Treasury yield. Bitcoin could continue to rebound if investors continue to expect risk appetite to favor risky assets over Treasuries. The key to Bitcoin will not only be positive ETF news, but will require a spike in rates to be entered into with confidence. There is always a risk that investors will prefer stocks to cryptos. As long as the Fed is done with this bull cycle and hopes of a soft landing remain, this should provide a positive backdrop for Bitcoin.
If Bitcoin manages to rally above the $31,500 level, the bullish momentum could support a rally towards the $35,700 region, which corresponds to the 38.2% Fibonacci retracement level of the all-time highs. collapse ($68,772) to the lowest of this cycle ($15,278).
What would really kickstart the crypto world is if we started investing new money in a very committed way. Support from Michael Saylor, Elon Musk or even Cathy Wood will not help attract new investors. Bitcoin skeptics are unlikely to change their minds anytime soon.
Some Bitcoin proponents believe that the upcoming halving in 162 days could potentially be the main catalyst to send Bitcoin back above the $40,000 level. A lot needs to happen for crypto, but at the very least it looks like regulation won’t kill the space.
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