Meanwhile, broader market conditions also influenced the shift in sentiment. Gabe Selby, head of research at CF Benchmarks, said more than 4% on Wednesday even as major US stock indices fell over 1%. During the same period, oil prices climbed amid the second week of the US-Iran conflict. Traditional markets showed volatility, yet cryptocurrency prices advanced.
Selby pointed to three forces shaping the . First, the market unwound oversized short positions that built up during earlier declines. Second, major long-term sellers showed signs of exhaustion. Third, the cryptocurrency market operates continuously, which allows traders to digest geopolitical shocks before traditional markets open.
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Derivatives funding rates declined into negative territory because of the sell-off that resulted from the conflict that occurred earlier this month. Selby described the environment as “coiled energy,” capable of producing instant changes. At the same time, institutional continued. On Monday, Strategy disclosed the purchase of another 17,994 Bitcoin for about $1.3 billion at an average price of roughly $70,946.
The company now holds approximately $56 billion in Bitcoin, with an average acquisition cost of $75,862. Meanwhile, its preferred stock STRC recorded the highest daily trading volume in its history. Chief Executive Phong Le said STRC offers more stability than MSTR shares, Bitcoin, gold, the S&P 500, and investment-grade bonds.
As derivatives traders increase bullish positioning and institutional buying continues, a question remains: Could Bitcoin’s renewed momentum carry the asset beyond the $80,000 level that traders now anticipate?