COINOTAG News reports on April 28th that QCP Capital has released a critical analysis of the current market dynamics, emphasizing the shifting correlations among Bitcoin, gold, and the stock market. In recent developments, Bitcoin initially soared alongside gold, even as the stock market declined, illustrating that a robust stock market is not a prerequisite for Bitcoin’s ascension. However, midweek trends indicated a notable shift, with Bitcoin beginning to align more closely with stock market fluctuations, largely in response to news from 21 Capital. This behavior suggests a breakdown of traditional correlation models, as investors increasingly scrutinize the sustainability of Bitcoin’s so-called ‘only up’ trend.
The sentiment within the options market is notably bullish, with substantial buying activity in call options. Last Friday, over 500 contracts for $104,000 call options set to expire on May 30, 2025, along with 800 contracts for $135,000 call options expiring on June 27, 2025, were actively traded. This latest Bitcoin rally appears fundamentally stronger than previous market cycles, as it is underpinned by genuine adoption from traditional financial institutions rather than mere speculative leverage. The perpetual contract funding rate has remained stable or even slightly negative, complemented by consistent net inflows into Bitcoin spot ETFs, totaling $3.1 billion over the last six days.
Yet, the ongoing viability of Bitcoin’s upward trajectory is poised for critical evaluation in the coming week. Key macroeconomic indicators and corporate earnings reports will play a pivotal role in determining whether Bitcoin can maintain its upward momentum, thus shaping the strategies of market participants going forward.