Bitcoin Retreats from Eight-Month High as Traders Bet on End to Bear Phase
Bitcoin retreated from its eight-month high on Tuesday after a dizzying 13% rally over four days. The cryptocurrency had surged above $87,381 in the US session but eased to around $85,500 in early Singapore trading.
The rapid move back above $80,000 has traders believing the bear phase is over, with momentum bringing sidelined capital back into the market and lifting prices.
Despite this, there are still headwinds facing Bitcoin, including crude oil at around $100 a barrel and US Treasury yields elevated, though falling. However, big inflows into spot US exchange-traded funds at the end of last week and Michael Saylor's Strategy purchasing Bitcoin for the first time in three weeks have lifted sentiment.
Rich Rosenblum, co-founder of crypto market maker GSR, warned that the risk is that this is a macro liquidity trade wearing a crypto costume. If so, a risk-assets wobble would put Bitcoin under significant pressure.