Bitcoin confirms its status as a safe haven
QCP Capital stated in a broadcast via Telegram on Monday evening: "Bitcoin's ability to rise over the weekend despite cautious sentiment in the stock markets following the credit downgrade confirms its status as a true store of value."
The company pointed to the continuous inflows towards Bitcoin exchange-traded funds (ETFs), along with strong institutional demand, as factors driving the rise, despite some liquidation of long leveraged positions in the derivatives markets.
Ethereum surpasses $2,900 supported by renewed interest in staking.
One of the main drivers in the market was the performance of Ethereum, which surged past the $2,900 mark, benefiting from the momentum generated by its breakout last week. This performance is attributed to renewed interest in staking flows on the Ethereum network, as well as positive sentiment following the Pectra update, despite no new catalysts being released on Monday.
Decoupling of Bitcoin from traditional assets.
Some traders believe that the recent separation between the performance of Bitcoin and gold, as both traditional assets for value preservation, is worth monitoring.
Augustin Van from SignalPlus said: "Unlike previous months, which saw a parallel rise in Bitcoin and gold, we are now witnessing an increase in Bitcoin alongside a decline in spot gold, which is also reflected in the movement of exchange-traded funds."
Van added: "Gold funds have seen a noticeable decline in inflows, compared to a slight increase in Bitcoin funds, with a similar pattern in gold and Bitcoin futures on the CME. We should expect more of these small decouplings and the emergence of opportunities for speculation on relative value.
Other cryptocurrencies such as Solana (SOL), Ripple (XRP), BNB (BNB), and Dogecoin (DOGE) also rose by between 2% and 4%.
As for the AAVE coin, it jumped by more than 25% during the same period, although this surge seemed driven by speculation, as no technical announcements or governance proposals directly related to the price movement were issued. Despite this rise, the coin is still down more than 60% compared to its peak levels in 2021.
