Matrixport: Bitcoin Forms Higher Lows, Short-term Trend Remains Bullish

ChainCatcher News, Matrixport released its daily analysis stating that bitcoin has recently experienced significant volatility, once falling below $84,000 with a single-day drop of over 6%. The decline was mainly driven by rising expectations of a rate hike by the Bank of Japan, which pushed up the yen exchange rate and forced the unwinding of some yen carry trades. In addition, nearly $1 billion in leveraged positions were liquidated, amplifying market volatility. Crypto-related stocks such as MicroStrategy once fell by about 12%. In November, the cumulative net outflow from spot bitcoin ETFs was about $3.5 billion. Coupled with Chinese regulatory authorities issuing a virtual currency risk warning, market risk appetite further declined.

The market subsequently stabilized and rebounded. Bank of America allowed financial advisors to recommend up to a 4% bitcoin allocation to high-net-worth clients, and Vanguard also began offering clients exposure to bitcoin-related products. Currently, the price of bitcoin has climbed back above $90,000, and from a technical perspective, a higher low structure has formed, indicating a short-term bullish trend.