The cryptocurrency markets have been energized again as Bitcoin ($BTC) surpassed the $78,000 mark, reaching its highest level in 11 weeks.
With investor risk appetite increasing, Scott Melker and macro strategist Noelle Acheson discussed the current state of the market and the dynamics behind Bitcoin’s rise on “The Wolf Of All Streets” channel.
Noelle Acheson stated that although Bitcoin is still viewed as a “risk asset” in the traditional financial world, its performance during times of crisis has shattered this perception.
Experts, noting that Bitcoin has always gained value 60 days after seven major crises since 2020 (including the collapse of Silicon Valley Bank), argued that $BTC actually serves as a “protection against chaos.”
One of the most critical points that stood out was the “worrying” signals from the bond market while stock markets were hitting record highs. The rise in 10-year Treasury yields to 4.2% – 4.3% indicates that markets have not yet found the relief they expected from the Fed’s interest rate cuts.
The broadcast stated that the hacking incidents in DeFi (Decentralized Finance) protocols last week and the vulnerabilities in platforms like “Kelp DAO” have created significant distrust in the market. This situation has driven institutional investors away from DeFi and towards Bitcoin, resulting in Bitcoin dominance reaching its highest level in the past year.
Analysts believe that data from derivative markets has not yet signaled “overheating” (frothy), leaving the door open for a new rally towards the $82,000-$84,000 levels. However, experts emphasize that investors should exercise caution due to speculation surrounding the Trump administration and global geopolitical risks.
*This is not investment advice.
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