The crypto market is recovering quite strongly, with Bitcoin rising approximately 4% in 24 hours to around $71,000. Notably, amidst escalating Middle East tensions and weakening US stocks, Bitcoin has outperformed gold – a traditional safe-haven asset.
The main impetus for this surge came from the liquidation of over $550 million worth of Short positions . When prices rose against expectations, those betting on a decline were forced to buy back to cut their losses, thus pushing prices up faster. However, it's worth noting that the total position in the Derivative market decreased slightly, suggesting that this rally was mainly driven by " Short selling" rather than significant new capital inflows.
In the altcoin sector, several AI-related projects performed quite well, partly thanks to Jensen Huang 's statements about the development of artificial intelligence. However, not the entire market was positive: the DeFi sector remained weak, and memecoins began to cool down, indicating a clear divergence in capital flows.
On a macroeconomic level, developments related to Donald Trump and tensions in the Middle East remain unpredictable. Oil prices are hovering around $100 per barrel, while the US stock market is under slight pressure. In this context, Bitcoin's continued upward momentum suggests that this asset is gradually establishing its own independent position, not entirely dependent on traditional markets.
Overall, the current trend can be XEM as positive in the short term, but caution is still needed. This rally is primarily technical, and the market will continue to be heavily influenced by macroeconomic factors in the coming period.
