Bitcoin Defies Typical Trends, Rallies 35% Despite Gains in Dollar and Yields
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Bitcoin has rallied over 35% to over $52,000 since Jan. 23 despite gains in the U.S. dollar index and Treasury yields, contradicting its typical inverse correlation.
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Bitcoin's resilience likely stems from strong spot ETF inflows in the U.S., providing buying pressure to offset usual selling pressure.
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Possible safe haven flows from regions like China and Nigeria facing economic troubles may also be boosting bitcoin.
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CME's hike in bitcoin futures margins resulted in short covering over the illiquid Lunar New Year, driving spot and futures prices higher.
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Bitcoin may be seen as both a risk-on asset and a safe haven, with ETF flows acting as a new demand channel rather than changing its fundamental nature.