Bitcoin has surged above $65,000 in the past 24 hours, buoyed by positive US employment data and new reports on China’s economic stimulus measures.
However, some analysts have pointed out that Bitcoin’s (BTC) performance has lagged behind that of U.S. stocks and Chinese stocks, raising questions about the cryptocurrency’s short-term momentum.
Nansen analyst Aurelie Barthere observed that Bitcoin has underperformed U.S. stocks and Chinese markets since Beijing announced its stimulus packages. “The Hang Seng and Chinese stocks have outperformed Bitcoin since the stimulus was announced,” Barthere said. “One reason for this may be that the measures taken by China primarily affect the local economy rather than the global or U.S. economy.”
While global stock markets rose on the Chinese government’s pledge to inject $284 billion into government spending and implement interest rate cuts, Bitcoin’s price action was less clear. US jobless claims also fell by 4,000 last week to a four-month low of 218,000, further supporting market optimism.
Despite the positive signals, Bitfinex analysts expressed concerns about market uncertainty, which they believe is hindering Bitcoin’s ability to attract passive flows. “Risky assets, including Bitcoin, are currently unable to attract passive flows. Uncertainty needs to decrease for asymmetric passive demand to return to Bitcoin flows,” they commented.
*This is not investment advice.