Francisco Rodrigues (always ET unless otherwise indicated)
Bitcoin (BTC) was barely changed on Monday, adding less than 1% amid a new trade tension and concerns of geopolitical instability spreading across the Indian subcontinent, where India and Pakistan are trading small arm fires.
Cryptocurrency has grown by 0.75% over the past 24 hours, making it a positive year, cutting off from traditional risk assets as investors questioned the durability of the US role as a global financial anchor. The broader market measured via the Coindesk 20 (CD20) index rose 2.2%.
US stock index futures point to a slight decline, with gold falling by more than 1%, and investors could be profiting from annual gatherings of 25% of precious metals. The shares endured the sale after China refused to discuss with the US to enter into a tariff agreement.
“Bitcoin wasn’t working like the liquid lever version of the Lever Red US Equity Beta.
NYDIG reports that while the long-term correlation of cryptocurrency to US stocks remains high, it points to a market that is beginning to treat BTC like high-tech stocks and more Safe Safe Haven.
Options and futures data suggests a Bitcoin rally that rose 9% last week, but is still in its early stages. The funding rate for permanent offshore swaps has been positive recently, and overriding calls has become more popular than aggressive bullish positioning.
Bitcoin’s appeal as a politically neutral asset appears to be growing. The memo shows that Bitcoin has surpassed the US Treasury, Swiss franc and gold since President Donald Trump’s “liberation date” on April 2.
The wider background remains unstable. Measures of volatility in stocks (VIX), bonds (moving) and currency (CVIX) have jumped over the past few weeks. They are expected to set back slightly, but the outlook is to continue to promote for the near future, the memo said.
Despite the growing appeal of Bitcoin, macro and geopolitical events will remain “the major driver of flow.” Jake O. “It’s a favourable structure for those reaching the topside,” according to Jake O., an OTC trader who flagged the Bitcoin Call Calendar in June with an email targeting $110,000.
This week, investors can see the influx of key corporate earnings reports, the latest consumer income and spending reports and the non-farm salary report for Friday, April. The data could provide further insight into the potential for rate cuts that are expected earlier than Trump has been seeking. Keep alerts!