Summary
- Bitcoin rose to a four-week high of $74,945 as risk assets gained on expectations that US-Iran peace talks could resume.
- Bitcoin has outperformed traditional assets such as gold and silver since the outbreak of war, rising more than 10%% since Feb. 27.
- Tony Sycamore said Bitcoin must sustain a break above the $79,000 trend-channel resistance for a medium-term bullish outlook.
Forecast Trend Report by Period
Trades near $74,000, up 10% since the war began
Has outperformed gold and silver since the outbreak of war
Sustained break above $79,000 needed for medium-term bullish view
Bitcoin rose to a four-week high on June 14 as oil prices fell and global equities advanced on optimism that peace talks between the US and Iran could resume.
The token climbed as much as $74,945, its highest since March 17. It was trading around $74,408 as of 12:10 p.m. GMT after giving up some earlier gains. Ether jumped 8.5% to $2,375.
Risk assets gained as Asian and European stocks advanced on optimism that renewed talks between Washington and Tehran could help drive oil prices lower.
Bitcoin is tracking the broader rally in risk assets, Damien Loh, chief investment officer at Ericksonz Capital, told Bloomberg. He added that Bitcoin has continued to outperform traditional risk assets such as US stocks. Still, it may struggle to stage a major breakout until the US passes the Clarity Act, a regulatory framework for digital assets.
Bitcoin has traded in a relatively narrow range this year after plunging from its record high of $126,000 in October last year. Since the outbreak of war between the US and Iran in late February, however, it has held up better than traditional assets such as gold and silver. Bitcoin has gained more than 10% since Feb. 27, while gold has fallen nearly 10%. The S&P 500 and Nasdaq indexes were at roughly similar levels to before the war over the same period.
Bitcoin has historically traded like a risk asset, and that pattern now appears to be reasserting itself.
Bitcoin has behaved more like a classic risk asset than a traditional haven, Tony Sycamore, an analyst at IG Markets, wrote in a report. Improved risk appetite this month relative to March has supported the recent rally. For a medium-term bullish outlook, Bitcoin would need to break above trend-channel resistance at $79,000 on a sustained basis and close above that level.
Data compiled by Bloomberg show US-listed spot Bitcoin exchange-traded funds recorded net outflows of $194.5 million on Monday, June 13. That was the biggest one-day outflow in two weeks, after net inflows of $771.4 million last week.
Kim Jung-a, Hankyung.com contributing reporter, kja@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
