Matrixport: Bitcoin breaks out to higher lows, short-term trend is bullish

Matrixport released a daily analysis indicating that Bitcoin has recently experienced significant volatility, briefly dropping below $84,000, with a single-day decline exceeding 6%. The drop was mainly influenced by rising expectations of interest rate hikes by the Bank of Japan, which pushed up the yen exchange rate, forcing some yen carry trades to be unwound. Additionally, nearly $1 billion in leveraged positions were liquidated, amplifying market fluctuations. Crypto-related stocks like MicroStrategy also saw a decline of about 12%. In November, Bitcoin spot ETFs experienced a cumulative net outflow of approximately $3.5 billion, coupled with risk warnings issued by Chinese regulatory authorities regarding virtual currencies, further reducing market risk appetite.

Subsequently, the market stabilized and rebounded. Bank of America allowed financial advisors to recommend up to 4% Bitcoin allocations to high-net-worth clients, and Vanguard also began to open Bitcoin-related exposure to its clients. Currently, the price of Bitcoin has risen back above $90,000, and from a technical perspective, it has formed a higher low structure, indicating a bullish short-term trend.