According to BlockBeats, on May 19, QCP released a daily market observation stating that amid pressure on US stocks, the Federal Reserve's continued cautious stance, and the highlighting of Washington's fiscal vulnerabilities by the US credit rating, Trump seems to be feeling the pressure as well.
However, Bitcoin has shown relative strength, briefly touching $107,000 on Sunday. This initial surge was likely triggered by Metaplanet's announcement of a $104 million Bitcoin purchase, while Strategy Inc also continued to increase its holdings as usual. However, this upward momentum did not last, as the funding rate for BTC perpetual contracts surged, leading traders to take profits by closing positions, resulting in the liquidation of some highly leveraged long positions.
Although BTC has retraced some of its gains during the Asian session, it remains within a recent range and is supported by a revival in institutional demand. The spot Bitcoin ETF continues to attract capital inflows, indicating strong fundamental support.
Notably, even in the context of Moody's downgrade of the US credit rating and a market sentiment leaning towards 'risk aversion', BTC managed to rise over the weekend, further reinforcing its positioning as a 'store of value'. This narrative is gaining more consensus and is expected to become a long-term bullish catalyst.
Meanwhile, the narrative across the entire crypto market is heating up. Coinbase (COIN) will officially join the S&P 500 index tonight, which is not only symbolic but also represents an increase in mainstream acceptance and institutional credibility. This news comes right after its strategic acquisition of Deribit, making the timing quite perfect.
The volatility market also reflects the market's optimistic sentiment. Although spot prices are in a consolidation phase, macro uncertainty remains, and the implied volatility of crypto assets is still relatively high. It is worth mentioning that the skew structure of Bitcoin call options remains stable across most maturities, suggesting that the overall market still maintains a structurally bullish expectation.
