Bitfinex Report: Bitcoin to Consolidate amid Declining Volatility

Odaily News In its latest report, Bitfinex noted that on January 20, Bitcoin hit a new high of $109,590, driven by optimism surrounding President Trump's inauguration and the prospect of more crypto-friendly policies in the United States. Speculative buying was spurred by expectations of moves such as a strategic reserve of Bitcoin and expanded regulatory transparency. However, Bitcoin struggled to maintain momentum, falling back below its previous all-time high of $108,100 and currently trading below $100,000. Bitcoin's correlation with the S&P 500 and Nasdaq has reached a year-to-date high, highlighting Bitcoin's evolving status as a leading risk asset. However, despite the S&P 500 hitting a new high last week, Bitcoin remains vulnerable to the news agenda, liquidity and speculation. Similar to some other stock markets, Bitcoin reacted cautiously after the Bank of Japan's rate hike last week and continues to be closely correlated with the stock market.