Bitcoin traded up on Fed Chairman Powell’s remarks before giving back all its gains during his Q+A session where he made it clear the Fed will maintain a hawkish stance until inflation eases. See our quantitative section for more analysis on Bitcoin price action.
Bitcoin’s rolling 30-day correlation to the Nasdaq and other types of risk-based assets has surged to 89% suggesting macro narratives are driving Bitcoin.
According to data from glassnode, downwards pressure has been driven by short-term holders who have capitulated over $2.5B in net realized value over the last week.
Perpetual funding rates have flipped negative which could drive a squeeze of short positions. Historically, negative funding rates have preceded major price moves.