Bitfinex Alpha | BTC to consolidate as volatility drops - Bitfinex blog
Bitcoin reached a new ATH of $109,590 on January 20th, driven by optimism over President Donald Trump’s inauguration and the expected advent of more crypto-friendly policies in the US. Anticipation of initiatives like a strategic Bitcoin reserve and expanded regulatory clarity boosted speculative buying. However, Bitcoin struggled to maintain momentum, retreating to trade below the previous ATH of $108,100, and now trading below $100,000, as concerns rise over China competition in AI and the ongoing threat of tariff hikes by the new US administration. Bitcoin’s correlation with the S&P 500 and NASDAQ has reached new year-to-date highs, highlighting Bitcoin’s evolving status as a major risk-on asset. But while the S&P 500 rallied to new highs last week— Bitcoin continues to be vulnerable to the news agenda, liquidity and speculation.
