₿ Bitfinex Report: Bitcoin Now Resembles a Risk Asset, Its Store of Value Function is Diminishing! 💰
Bitfinex's analysis report states that Bitcoin has been consolidating between $91,000 and $102,000 for 75 days. This indicates that Bitcoin's volatility is decreasing and its maturity is increasing, but it now resembles a risk asset more than the commonly referred to "digital gold".
The recent consolidation of Bitcoin is actually reflecting changes in the macroeconomic landscape. For example, when U.S. President Trump announced tariffs on China, Canada, and Mexico, Bitcoin reacted accordingly. However, its correlation with traditional stocks has not changed. Bitcoin's market capitalization is now nearly $2 trillion, surpassing major assets like silver, Saudi Aramco, and Meta, indicating that Bitcoin's influence in global finance is growing.
The report also mentions that although Bitcoin's price has been fluctuating, its actual volatility has decreased, suggesting it remains relatively stable amid short-term fluctuations, and highlights its significant role in the changes of the global macroeconomic environment. As of today, Bitcoin's price is $95,175, continuing the downward trend that started in late January and struggling to break through $100,000.
Bitfinex has also found that Bitcoin's market performance has become increasingly correlated with the S&P 500 index, while its correlation with gold has decreased. This indicates that Bitcoin now resembles traditional stocks more than previously regarded as a store of value tool.
Although Bitcoin has risen by 3.5% this year, gold has performed better, increasing by 9%, and has set a historical high of $2,880 per ounce. Therefore, Bitfinex's analysis suggests that gold is now perceived as a more mature store of value compared to Bitcoin.
In summary, this change actually reflects a shift in the market's perception of cryptocurrencies. This may imply that Bitcoin's future trends will be more influenced by the global economic situation and policy changes rather than mere market speculation. Therefore, investors should be cautious and manage risks effectively when making related decisions!
💬 What do you think? Do you believe Bitcoin will continue to act as a safe-haven asset like gold, or will it completely transform into a high-risk investment tool? See you in the comments!
