Bitcoin is up 1.07% to $64,201.32 in 24h, outperforming a flat broader market, primarily driven by a macro-driven relief rally. It shows a strong negative correlation (-90%) with the S&P 500, indicating a rates-driven move as traders reduced bets on a September Fed rate hike.
1. Primary reason: Shift in Federal Reserve expectations, as traders priced in a lower probability of a September rate hike, weakening the dollar and lifting risk assets.
2. Secondary reasons: A leveraged short squeeze, with $57.4 million in BTC short positions liquidated, amplifying the upward move.
3. Near-term market outlook: If BTC holds above the $63,152 Fibonacci support, it will likely test key resistance at $65,000; a break below risks a retest of the $62,500–$63,000 support zone, especially if ETF outflows resume. #btc