According to QCP Capital's report, Bitcoin's rise to $106,350 has changed the balance in the market once again.
Bitcoin (BTC) surged past the $106,350 level in early Asian trading hours, according to a report shared by cryptocurrency analysis firm QCP Capital.
This upward momentum was accelerated by short position liquidations worth approximately $151 million in the last 12 hours.
The weak and comfortable liquidity of the market on Sunday triggered the rise by squeezing short positions, with funding rates on the Deribit platform falling into negative territory for a short time.
Analysts stated that the data to come from the FED on December 18th would need to be extremely mild for this week’s rise to continue, but said that this was unlikely:
This week’s central bank meetings appear to be just background noise for cryptos, with Bitcoin remaining decidedly sentiment-driven. While highly unlikely, an overly moderate Fed and Powell could provide the impetus Bitcoin needs to climb even higher.
Bitcoin’s move has further strengthened its status as “digital gold” and has become a more preferred asset as a store of value compared to gold. The BTC/Gold ratio has reached an all-time high with this rise, highlighting Bitcoin’s increasing superiority over traditional gold.
This development is considered an important indicator for cryptocurrency investors and financial professionals who follow the market. With Bitcoin's positioning as digital gold solidifying, it is expected that more investors will choose Bitcoin as a store of value in the future.
Stay tuned for new information.