Trump’s Frustration and Moody’s Downgrade Fail to Shake Bitcoin’s Strength

Over the weekend, he criticized Walmart for raising prices due to tariffs and hinted at traveling to China to restart trade talks. Meanwhile, Bitcoin (BTC) has shown resilience, briefly touching $107,000 on Sunday, a point highlighted by QCP Capital despite broader market uncertainty.

BTC Rally Fueled by Strategic Purchases

QCP Capital points out that Bitcoin’s rally was likely driven by Metaplanet’s $104 million BTC purchase and regular weekend buying from Strategy Inc. This was followed by a rise in BTC perpetual funding rates. However, the rally was short-lived as traders holding long gamma positions took profits, triggering liquidations of leveraged long positions.

Bitcoin’s Resilience Amid Market Volatility

Despite a dip in price during Asia trading hours, Bitcoin continues to trade within its recent range. According to QCP Capital, institutional demand for Bitcoin is rising, as evidenced by continued inflows into Bitcoin spot ETFs. This underpins the growing narrative that Bitcoin is a solid store of value.

BTC as a Store of Value Amid Moody’s Downgrade

QCP Capital notes that Bitcoin’s ability to maintain momentum, despite the Moody’s downgrade of the U.S. credit rating and the risk-off sentiment in equities, reinforces Bitcoin’s role as a legitimate store of value. This strengthens the narrative that Bitcoin could serve as a long-term investment option.

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Crypto Market Momentum Strengthened by Coinbase

The broader cryptocurrency market is also gaining ground. As QCP Capital observes, Coinbase’s entry into the S&P 500 today marks a significant milestone for the industry. This, combined with Coinbase’s strategic acquisition of Deribit, demonstrates the increasing mainstream acceptance and institutional credibility of crypto assets.

Optimism Reflected in Crypto Volatility Markets

Crypto volatility markets are reflecting optimism, despite the sideways price movement in Bitcoin. QCP Capital highlights that Bitcoin’s call skew remains strong, indicating a generally bullish sentiment among traders. Even as macroeconomic uncertainties linger, crypto volatility remains elevated, signaling confidence in Bitcoin’s outlook.

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