Bitcoin Soars Ignoring Macro and Regulatory Pressures
Bitcoin single-day price surge linked to billions in USDC inflows, and could be primed to a new rally as Nasdaq forms a bullish pattern.
16th February 2023 - Bitcoin surged in the last 24h reaching US$24.5k ignoring, together with other risk assets like tech stocks, the recent above-than-expected US inflation data and the regulators crackdown on the crypto industry. The Bitcoin price soared US$1,8k in one candle, the largest increase in six months. This movement occurred as investors left dollar stablecoins like BUSD and USDC toward USDT and BTC, which may have caused a Bitcoin short squeeze. Indeed, there were more than US$60mn in BTC short positions liquidations. On top of that, the increasing number of digital collectibles using the Bitcoin blockchain through the Ordinals protocol has helped to boost activity on the network as well. This seems to be a solid uptrend for Bitcoin, in our view, because the market is bullish despite the macro and regulatory pressures.
Bitcoin is not alone among the risk assets in an uptrend these days. Nasdaq Composite is forming a bullish pattern and could help Bitcoin to reach the US$25-30k range if the positive sentiment persists for the time being. Indeed, the popular crypto market sentiment indicator, the Fear & Greed Index, has returned to the Greed zone after yesterday's price rally. We think that the increasing correlation between tech stock and crypto will continue in a bull run.
This bullish moment is also exciting well known names in the industry like the venture capitalist Mike Novogratz who predicts US$30K Bitcoin by the end of this quarter. He argues that a month ago he was seeing Bitcoin to be at this price level only by the end of the year, but now he is more optimistic about it, despite the pressures against the market. We agree with Novogratz, the sentiment is improving fast and would not be surprised if the Bitcoin price reaches the US$25-30k range in this quarter.
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