Meltem Demirors, chief strategy officer at CoinShares, said: bitcoin (BTC) identified two main catalysts behind current market strength.
Participating in a new interview with Bloomberg Television Meltem DemirorsHe does not believe that the US banking crisis is the main reason behind Bitcoin’s price action in recent months.
Demirors explained his views by identifying the two main catalysts that gave momentum to BTC. The chief strategist primarily highlighted the increased risk sentiment of investors and the anticipation of the BTC halving.
I think what happened is mostly related to the increase in risk appetite of investors despite macro developments and expectations regarding interest rates.
NEWS CONTINUES BELOWI think our focus here is not just on the banking crisis, but on a broader risk appetite and perhaps more comfortable reallocation of investors and continued exposure to crypto.
He also underlined that Bitcoin’s price correlation with global stocks has decreased significantly.
Bitcoin’s correlation with global equities has dropped to a recent low and is hovering around 12%.
There Are Two Main Catalysts for Bitcoin
Referring to the Fed’s tendency to reduce inflation, Demirors also pointed to the latest interest rate hike. According to the chief strategist, this should not affect the performance of BTC. However, he stated that it is a development that will affect areas such as DeFi. The main reason for this is that revenues such as treasury bills are higher than DeFi.
You can follow the current price action here.