Bitcoin broke above $70,000 early Wednesday morning, signaling resilience amongst macro-economic turmoil.
The largest cryptocurrency by marketcap has held between $60,000 and $70,000 since late January. In a note Wednesday, investment fund QCP Capital described the market action as a stabilization period driven by on-chain accumulation from longer-horizon holders.
“The $60k–$70k corridor has seen significant on-chain accumulation from longer-horizon holders, and derivatives positioning into March expiry continues to lean constructively, suggesting participants are cautiously rebuilding exposure,” QCP said in its recent market commentary.
QCP further says that the current investment picture–particularly the slight drop in equity values since the start of the conflict–is not a “flight-to-safety,” but a “stagflationary mix.”
Equity prices are highly correlated with oil prices, which have swung widely since the start of the conflict. Still, major U.S. indices are down less than expected, such as the S&P 500 down only 1.4% since the start of the conflict, per the Wall Street Journal.
