Bitcoin Poised for Longest Daily Winning Streak in Three Months
**Bitcoin Set for Its Longest Daily Gains in Three Months**
Bitcoin is on the verge of achieving its longest daily winning streak in three months, demonstrating a notable turnaround in market sentiment. This recent surge comes as both Bitcoin and Ethereum enter bullish trend regimes. The momentum has been noteworthy, with traders and investors eager to see how this will impact the broader cryptocurrency market.
The shift follows a period of tax-loss selling that characterized late December. According to market analysts, "We turned constructive following the late-December options expiry, anticipating that tax-loss selling would subside and that trading desks would regain flexibility to deploy risk into the new year," stated Thielen in a message relayed to CoinDesk. This optimistic view suggests that traders are more willing to engage in riskier investments as the market stabilizes.
Early inflows into Bitcoin Exchange-Traded Funds (ETFs) have also created a positive outlook. Thielen added, "Early ETF inflows have been encouraging, and as long as Bitcoin holds above its 21-day moving average, the near-term bias remains skewed to the upside." This indicates a strong buying interest among investors, likely contributing to Bitcoin's current price resilience.
Despite the optimism in the crypto markets, analysts still monitor external factors that could influence financial conditions. Lee noted, "Oil, for now, remains relatively contained around the $60 per barrel level, which helps limit immediate inflation pressure, but markets are clearly discounting the risk of future energy disruptions and tighter liquidity conditions that may compel the Federal Reserve to keep rates elevated for longer." These wider economic elements may play a significant role in the direction of cryptocurrency prices as the year progresses.
As the cryptocurrency market continues to evolve, all eyes will remain on Bitcoin to see if it can maintain its upward trajectory and possibly extend its winning streak in the days ahead.
This report is for informational purposes only and is not financial advice.