Bitcoin growing status as “digital gold” challenges traditional gold as a store.
MicroStrategy’s Nasdaq 100 inclusion boosts Bitcoin’s institutional adoption and sentiment.
Bitcoin (BTC) surged past the $106,500 mark during the early Asian hours, marking another significant milestone in its ongoing rally. The surge was fueled by a series of short liquidations, with approximately USD 151 million in positions being wiped out over the past 12 hours. The liquidations came amid a period of illiquidity, compounded by a complacent weekend market. Deribit funding briefly turned negative, contributing to a short squeeze that sent BTC prices soaring, reports QCP.
The rally also saw Bitcoin’s value relative to gold reach an all-time high. This milestone further solidified Bitcoin’s reputation as “digital gold,” elevating its status as an increasingly preferred store of value compared to traditional gold. The BTC/Gold ratio’s peak is a reflection of growing investor sentiment favoring Bitcoin as an inflation hedge. And safe-haven assets in uncertain economic times.
Moreover, adding fuel to the fire, MicroStrategy’s inclusion in the Nasdaq 100 index provided additional momentum. Michael Saylor, the company’s executive chairman, hinted at further Bitcoin purchases, despite the cryptocurrency’s spot price being well above the $100,000 threshold. This announcement could prompt passive fund inflows into MicroStrategy shares, thereby enhancing the company’s capacity to raise funds for additional Bitcoin acquisitions.
Can We Stay Bullish On Bitcoin?
While attention is focused on upcoming central bank meetings, including the Federal Reserve’s policy outlook, the cryptocurrency market remains primarily sentiment-driven. Although the likelihood of a highly dovish stance from the Fed remains low, any shift in tone from Chairman Jerome Powell could offer the final push for Bitcoin to climb even higher.
With short-term catalysts supporting the rally, Bitcoin’s trajectory appears firmly bullish, with its market position growing stronger as institutional adoption and mainstream recognition continue to rise.
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