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Key Points
Sitting around the Thanksgiving table this week, plenty of folks will likely be discussing Bitcoin (CRYPTO: BTC).
In such discussions, price levels and recent price actions can easily become the topic of conversation. There's good reason for this, considering Bitcoin's relative volatility compared to other assets valued at the trillion-dollar level or above.
Today's 4% move higher in Bitcoin over the past 24 hours (as of 4:30 p.m. ET) bodes well for bulls defending this top cryptocurrency over the next few days. Let's dive into what's driving this move in Bitcoin and what this recent rally may mean as investors model out potential returns for the year.
Bitcoin Bulls Thankful for Market Correlation
There's usually a significant catalyst at play regarding Bitcoin's daily price movements. Commentary suggests that call options and long derivative purchases are increasing. However, the liquidation data for Bitcoin over the past 24 hours has been muted compared to the down days we've seen for this top digital asset in recent weeks.
Short liquidations have outpaced long liquidations by a 5-to-1 ratio over the past day, making it clear that investors taking bearish bets on Bitcoin are starting to see their positions unwind. A further unwinding of these bets, combined with a surge of capital flows into spot Bitcoin ETFs and other funds that directly invest in this top token, could drive more rapid price appreciation compared to other assets such as equities.
This higher-beta correlation with the Nasdaq and other high-growth stocks makes Bitcoin an attractive option for short- and long-term investors and speculators seeking to predict the market's next direction.
I'm uncertain which direction Bitcoin will take over the next month. But rest assured, whichever way Bitcoin goes from here, it will likely do so in a remarkable fashion.
Should You Invest $1,000 in Bitcoin Right Now?
Before buying Bitcoin, consider this:
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This article has been published in fool.com via Yahoo News.
Here's Why Bitcoin Rebounded Nicely Before Thanksgiving
Bitcoin's 4% move higher ahead of Thanksgiving has plenty of bulls counting their blessings.
finance.yahoo.com
