Bitcoin’s Mad Dash: Is It Real or Just a Frivolous Fancy? 🤑

by

Bitcoin, that digital bauble beloved by speculators and misunderstood by nearly everyone else, has, I am reliably informed, surged past $110,000. One shudders to think what the charladies will make of it. A new all-time high, they say, as crypto, in a fit of exuberance, rallies hard. One can only hope it doesn’t lead to another ghastly bubble.

The previous peak, a vulgar display reached during President Trump’s inauguration (a time of such questionable taste), was surpassed in late morning trading, according to crypto.news data. The buying momentum, like a particularly persistent bore at a cocktail party, sustained after U.S. equity markets closed. The largest cryptocurrency by market cap, apparently, pushed above $110,000. One wonders if anyone actually understands what that means. 🤔

Bitcoin has gained more than 4.5% in the past 24 hours and over 23% in the last month, reflecting a sharp reversal from April’s downturn. A downturn, one might add, that was entirely predictable. Such volatility! It’s enough to drive one to drink. 🍸

U.S. equities 

The rally, if one can call it that, mirrors the broader recovery in U.S. equities, despite Wednesday’s sell-off on Wall Street. Since late April, the S&P 500 has climbed 15%, while the Nasdaq is up more than 21%. Analysts, those notoriously unreliable soothsayers, attribute the bounce to growing optimism that President Trump’s trade policies may be less aggressive than initially feared. One suspects they are merely whistling in the dark. 🙄

After introducing steep tariffs in early April—including a blanket 10% import tax and additional penalties for Chinese goods—the White House signaled a partial retreat. A strategic blunder, no doubt, but then, what else is one to expect? 🤷‍♀️

 A 90-day pause on the most severe measures was announced last week by Treasury Secretary Scott Bessent following negotiations with Chinese officials. One imagines the negotiations were as tedious as they were pointless.

Bitcoin initially fell to a two-month low of $76,000 shortly after Trump unveiled the tariffs, reflecting market fears over a broader global slowdown. A global slowdown! As if we haven’t had enough of those. 😒

Despite Bitcoin’s reputation as a hedge against traditional financial assets, it often trades in tandem with risk-on equities, especially tech stocks. So much for being a hedge. It’s all just a gamble, isn’t it? 🎲

What’s going on with Bitcoin? 

Some of Bitcoin’s momentum appears driven by crypto-native catalysts. Enclave Markets CEO Phil Wirtjes said the rally was “likely aided by policy advancements,” particularly bipartisan progress on stablecoin legislation. Policy advancements! As if legislation ever solved anything. 📜

A draft bill that would establish clearer rules for USD-backed digital tokens has gained traction in the Senate. One shudders to think what horrors that will unleash.

Institutional demand has also picked up. Spot Bitcoin ETFs attracted $329 million in inflows over the last 24 hours. Inflows! The very word makes one feel faint. 🤢

Bitcoin’s latest rally raises questions about how much of its performance is driven by macro versus crypto-native factors. A question, I suspect, that will remain unanswered, much like the mysteries of the universe. 🌌

While regulatory clarity and ETF inflows are key tailwinds, the correlation with stocks suggests that investor appetite for risk remains a dominant force in both arenas. Risk! The only thing that makes life worth living, or so they say. 😈

Read More

2025-05-22 05:12