Bitwise Just Sounded The Alarm—Bitcoin Could Explode Soon
Bitcoin is experiencing a favorable shift in market conditions, with key indicators of risk appetite, liquidity, and macro momentum supporting its price. The asset rebounded from $101,000 to approximately $108,000 amid cooling inflation and a dovish Federal Reserve. Bitwise’s Cryptoasset Sentiment Index indicates a bullish sentiment, driven by record net inflows of $14.3 billion into Bitcoin exchange-traded products (ETPs) this year. A decline in macro uncertainty, including potential US trade agreements and a conciliatory tone between Washington and Tehran, is encouraging investor risk-taking. Fed Chair Jerome Powell's comments on rate cuts further support this outlook. Whale wallets withdrew 8,740 BTC from exchanges, reducing exchange reserves to 2.898 million BTC. While futures open interest decreased, options markets show a reduction in bearish sentiment. Bitwise's Cross-Asset Risk Appetite index rose, indicating a return to growth-sensitive trades. Continued ETF inflows and favorable geopolitical developments suggest Bitcoin's upward trajectory may persist. At press time, Bitcoin traded at $106,840.
