Bitcoin Strength Under Question As DOJ Fed Probe Looms
Bitcoin's strength is questioned despite a brief jump past $92,000 due to ETF outflows and weak derivatives demand.Summary
Bitcoin briefly surpassed $92,000 following news of a US DOJ criminal investigation into Federal Reserve Chair Jerome Powell, a scenario that might typically favor alternative assets like BTC. However, traders remain skeptical as institutional selling is evident through $1.38 billion in net outflows from Bitcoin ETFs over four sessions. Furthermore, the BTC futures basis rate remains neutral at 5%, far below the 10% threshold signaling a true bullish breakout. Despite a significant purchase by MicroStrategy, Bitcoin has struggled to hold above $94,000, and its long-term performance lags behind gold and silver. Analysts are also less confident about near-term US economic stimulus, and there is no clear evidence of a US dollar debasement trade, suggesting subdued appeal for cryptocurrencies and low odds of an immediate rally toward $105,000.
(Source：Cointelegraph)