$BTC #TradeSignal

There are 2 possible meanings for the rise of bitcoin

Is bitcoin rising due to improved sentiment in risk markets or as a refuge against economic uncertainty?

Bitcoin (BTC) rose yesterday to over 94,000 dollars (USD), its highest in two months, while U.S. stocks barely recovered the prices from last week. What does this mean? Why is there such a contrast and greater recovery?

With the rise to its two-month high of USD 94,000, bitcoin is positioned 11% below its all-time high of USD 109,000 recorded in January. This comes after hitting its lows in four months three weeks ago at USD 76,000.

Meanwhile, the S&P 500 (SPX), which showed a larger setback falling three weeks ago to USD 4,900, prices not seen in over a year, has rebounded to USD 5,300 that it recorded last week. Thus, this index, which groups the stocks of 500 large companies listed in the United States, is 13% below its record of USD 6,100 reached in February.

The fall of bitcoin to USD 76,000 represented a 30% retracement from its all-time high, a normal percentage when compared to previous bullish cycles. In contrast, the drop of the SPX to USD 4,900 represented a depreciation of over 20% from its record, which is typically seen before starting a bearish cycle.

In summary, as seen below, bitcoin shows a notably greater resistance than the SPX in this context, which has been driven by several factors. Among the catalysts, the pause on tariffs for imports in the United States, progress in trade negotiations between countries, and President Donald Trump's pressure for the Fed to lower interest rates stand out.

Bitcoin not only leads a better recovery from the fall than U.S. stocks, but additionally, its retracement was to prices from a shorter time ago and within a percentage range that does not raise alarm bells for a cycle.