Bitcoin [BTC] bulls undeterred by macro mayhem, new report shows

ambcrypto.com:

While uncertainty lingers around the Federal Reserve’s rate decisions, on-chain data revealed that optimism subsists in Bitcoin’s [BTC] market, as many expect the king coin’s price to grow further, Galaxy noted in a new report. 

In its latest report titled “ Bitcoin Data Shows Bullish Foundation ,” digital assets research firm Galaxy found that since the closure ofSilicon Valley Bank on 10 March, BTC’s price has risen by over 45%. With many expecting the coin to claim the $30,000 price mark, positive sentiment drives the market.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

According to Galaxy, BTC’s correlation with the traditional equities market has dwindled since the bank crisis began. Interestingly, during the same period, its correlation to gold “has increased sharply.”

Largely, this is a positive thing for BTC, as gold is often viewed as a safe-haven asset. An increase in correlation suggests that BTC is also being seen as a store of value or a hedge against economic uncertainty.

Galaxy opined:

“These correlation data show that, at least recently, Bitcoin has indeed performed more like a safe-haven asset than a risk asset.”

Source: Galaxy

While BTC remains a significantly volatile digital asset, its volatility “has been slowly declining over time.” According to data from Glassnode , while the coin’s annualized volatility surged at the break of SVIB’s collapse, it has since been slightly stable.

Source: Glassnode

The increase in the percentage of BTC’s total supply held in profit may be a factor contributing to growing optimism among BTC holders in recent weeks. Galaxy, in its report, found that BTC’s current supply held in profit sat at 75%, the highest since April 2022. 

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