Why it may (or may not) continue to rise

00:00 Josh

Bitcoin is experiencing some reversal here. The cryptocurrency is on the rise after falling more than 30% from its peak. Bitcoin ETFs are heading for their worst monthly outflow, with investors withdrawing $3.5 billion so far this month.

00:23 Josh

By uniting with more, we got our own Inez Ferre. Inez.

00:30 Inez Ferre

Yes, Josh, and as you just mentioned, we are seeing an uptrend in Bitcoin, and as Jared mentioned, we’ll have to see if this is a sustainable uptrend when it comes to Bitcoin.

00:43 Inez Ferre

To back up, the entire crypto market has lost approximately 29% of its market cap value since October.

00:52 Inez Ferre

The big push you see in Bitcoin. Bitcoin is down nearly 29% from its all-time high in October; This takes into account today’s rise and the rise we’ve seen since Friday.

01:08 Inez Ferre

This is because some Fed officials have taken a dovish stance regarding a possible interest rate cut in December.

01:16 Inez Ferre

But the question is whether this will be a long-lasting bounce. There are also strategists who are cautious about this issue because 10X Research does not think that this rise will continue. They believe that this situation will disappear towards the FOMC meeting.

01:36 Inez Ferre

Because if a 25 basis point cut would be considered a hawkish cut in their opinion, if it were a 50 basis point cut or if there was a lot more dovishness from the Fed, then the situation would be different.

01:48 Inez Ferre

On Friday, Fundstrat’s Sean Farrell was questioning whether you’d see a meaningful leg higher if there was still AI concern in the stock market because if you see that reversed, then it would be difficult for Bitcoin to outperform.

02:04 Inez Ferre

So it’s kind of a wait and see thing. So what could be the catalyst that will send Bitcoin and the crypto market in general higher in the future? Look, certainly Fed dovishness and also the Openness Act, but that’s unlikely to happen this year.

02:22 Inez Ferre

And then whether the strategy will enter the S&P 500. Meanwhile, the strategy rose today, marking the first time in six weeks that the strategy did not announce the purchase of Bitcoin over the past week.

02:40 Inez Ferre

Investors have been waiting to see which strategy will be announced today, and so far there have been no announcements regarding Bitcoin purchases in the past week, analysts said.