Bitcoin is gaining traction as a potential alternative reserve asset amid shifting market sentiment and geopolitical concerns. The cryptocurrency market experienced its largest short squeeze since the '1011 crash,' with investor sentiment moving from fear to greed. Nicolai Sondergaard from Nansen highlighted that uncertainty surrounding the Federal Reserve's independence and geopolitical tensions are structural positives for Bitcoin. The ongoing criminal investigation into Federal Reserve Chair Jerome Powell could further add a 'risk premium' to Bitcoin. Year-to-date, Bitcoin's price has increased by 10.6%, while the U.S. Dollar Index has risen by 0.75%.
Bitcoin Gains 'Risk Premium' Amid Powell Investigation and Market Shift
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