New rally in Bitcoin

Bitcoin reached $64,000 for the first time since November 2021. Bitcoin has gained over 45 percent this year. Bitcoin tested above $62,000 with an increase of over 10 percent during the day. Matthew Sigel, Head of Digital Asset Research at VanEck Associates, commented, “We are seeing evidence of increasing interest from both retail and institutional investors who want to be risk-averse on the digital gold side. History suggests that even steeper and more violent rallies are on the horizon.” Still, some analysts believe the rally is on the wane. Stefan von Haenisch, Head of Trading Desk at OSL SG Pte in Singapore, pointed to rising borrowing costs to finance Bitcoin purchases as a potential risk. Stefan von Haenisch said, “A correction seems inevitable after such an aggressive move – with funding rates at such high premiums, it is only a matter of time before the leverage between longs is eliminated. A correction towards the mid-$50,000 level in Bitcoin would not be surprising.” Bitcoin reached its historic peak of $69,000 in November 2021. With this rise, Bitcoin is still about halfway past its peak.