BlockBeats News, April 21st. QCP released its daily market observation, stating that Bitcoin staged a "resurrection" during the Easter period, surging to over $87,000 during the Asian morning session, quickly reversing the sell-off triggered by former U.S. President Trump's unexpected "Liberation Day" announcement on April 2nd. This rally reclaimed most of the decline. Although the cryptocurrency market is no stranger to rebounds with low liquidity during long weekends, this surge is in stark contrast to last December's calm "Santa Claus rally." This time, Bitcoin's performance was impressive.
Bitcoin was not the only one shining. Gold also surged to a historical high due to escalating trade tensions and a weakening U.S. dollar. Last week, the stock market closed lower, continuing its downward trend in April, bringing attention back to Bitcoin as a safe haven asset or inflation hedge tool. If this trend continues, it may provide a new tailwind for institutional investors to allocate to Bitcoin.
In fact, there are already preliminary signs of renewed institutional confidence. Last week, net inflows into spot Bitcoin ETFs turned positive, with a net inflow of $13.4 million, sharply contrasting with the net outflow of $708 million in the previous week. In the options market, position allocation has become more balanced. Risk reversal indicators across different maturities are stabilizing, deviating from the short-term bearish skew seen in the past few weeks.
So, is today's simultaneous rise in Bitcoin and gold merely holiday-driven noise, or is it a significant transformation of Bitcoin as a safe haven asset? The latter would mark a substantial shift in traditional finance's view of Bitcoin. As Europe is still on holiday, market confirmation may take several trading days. The correlation between Bitcoin, gold, and the stock market is worth close attention. Currently, the focus is on the key resistance level of $88,800. Until a clear breakthrough above this level, it is advisable to remain cautious in drawing definitive conclusions.
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