This week the cryptocurrency market has been really lively. The short squeeze on Wednesday was so large that it directly broke the record set since last year. Investor sentiment shifted rapidly from panic to greed.
Data analyst Nicolai Sondergaard pointed out that the increasing uncertainty about the Federal Reserve's independence and rising geopolitical risks actually constitute a structural positive for Bitcoin. Although precious metals are still benefiting from current gains, Bitcoin is quietly becoming part of the discussion on alternative reserve assets. The key is that certain political events could bring additional "risk premiums" to BTC.
Looking at the market trend, Bitcoin has risen 10.6% since the beginning of the year, while the US dollar index has only increased by 0.75% in the same period. What does this gap indicate? It shows that Bitcoin's attractiveness in the current macro environment is indeed increasing. Whether for hedging or store of value, new supporting points are emerging.
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CounterIndicator
· 01-18 03:47
The short squeeze was really fierce this time. Now we’ll see how long the bulls can hold on.
Is the shift from panic to greed happening so quickly? Typical retail investor sentiment...
Bitcoin's increase is much greater than the dollar's. What does that indicate? It just means funds are fleeing fiat currency.
When geopolitical tensions escalate, BTC benefits—it's the old routine.
10.6% versus 0.75%, the contrast is just too obvious.
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SnapshotLaborer
· 01-17 09:18
I see through this short squeeze wave—it's just a panic dump hitting the floor, with the perfect rebound play... The shift towards greed is happening so fast it's unbelievable. How can retail investors and newcomers keep up?
However, BTC's gains truly outpace the dollar, and that's the real highlight. I can't quite grasp the logic of risk premiums... The Federal Reserve still hasn't figured out what to do.
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0xSherlock
· 01-15 14:46
Short squeeze so fierce that it directly set a new record. This wave feels a bit too intense...
Panic turning into greed, indeed players' emotions are switching a bit too wildly.
BTC's gains have wiped out so much of the dollar's value, the topic's popularity is obviously different now.
With this rhythm, it seems there are some political risks fueling the momentum behind the scenes.
The more chaotic the geopolitical situation, the more valuable BTC becomes. This logic is becoming more and more convincing.
Finally, someone dares to speak out about the alternative asset framework. What does that imply?
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¯\_(ツ)_/¯
· 01-15 14:42
The short squeeze this time is truly incredible. It went from panic to greed in an instant. I didn't expect such a reversal speed.
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DAOTruant
· 01-15 14:31
The fierce short squeeze indicates that a bottom consensus is forming, but don't let greed cloud your judgment.
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MEV_Whisperer
· 01-15 14:24
The short squeeze was indeed fierce, but the shift to greed happened too quickly. It still feels like a rinse and repeat of harvesting the little guys.
Bitcoin's gains outpaced the dollar, and that's the real focus. No wonder so many institutions are starting to get restless.
Regarding risk premium, honestly, political uncertainty is the real catalyst.
Is this a genuine opportunity or just another castle in the air? We’ll have to see how the subsequent trend develops.
10.6% vs 0.75%, can numbers be deceiving... but it’s definitely looking better than in previous years.
This week the cryptocurrency market has been really lively. The short squeeze on Wednesday was so large that it directly broke the record set since last year. Investor sentiment shifted rapidly from panic to greed.
Data analyst Nicolai Sondergaard pointed out that the increasing uncertainty about the Federal Reserve's independence and rising geopolitical risks actually constitute a structural positive for Bitcoin. Although precious metals are still benefiting from current gains, Bitcoin is quietly becoming part of the discussion on alternative reserve assets. The key is that certain political events could bring additional "risk premiums" to BTC.
Looking at the market trend, Bitcoin has risen 10.6% since the beginning of the year, while the US dollar index has only increased by 0.75% in the same period. What does this gap indicate? It shows that Bitcoin's attractiveness in the current macro environment is indeed increasing. Whether for hedging or store of value, new supporting points are emerging.