After a slight pullback, Bitcoin is now aiming to reach new yearly highs, with a potential retest of the $31,800 level. This surge in Bitcoin’s price can be attributed to the growing FOMO (fear of missing out) among investors due to the anticipation of spot Bitcoin ETF application approvals. Additionally, macro factors are playing a role in supporting this upward push. The US Dollar Index (DXY) and yields on long-term US government bonds have experienced a sharp decline, influenced by bearish commentary on the US economy by renowned hedge fund manager Bill Ackman. Ackman has expressed concerns about the US economy slowing down faster than what recent positive data suggests.
Ackman’s decision to close a short position on US government bonds has contributed to the decline in yields and a spike in bond prices. This, in turn, has had a positive impact on Bitcoin’s price as it is considered a non-yielding asset. Alongside these factors, Bitcoin has also benefited from safe haven demand due to geopolitical concerns. This has resulted in a strong performance for Bitcoin, with gold also experiencing an increase in value in recent weeks.
The rally in Bitcoin’s price has had a ripple effect on the rest of the market. Other cryptocurrencies, such as Ether (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA), have also seen positive gains in the last 24 hours, further highlighting the overall bullish sentiment in the crypto market.
