After fooling conservative investors skeptical of Bitcoin (BTC-USD), it returned an impressive 11% in the last week. Bears thought that after the SEC approved a spot BTC ETF, prices would continue falling below $40,000. Instead, buyers entered aggressively at around $39,500 on Jan. 22.
Why?
Bitcoin closed at highs not seen in a month despite the Federal Reserve nixing the notion that it would lower interest rates by 25 bps in March. Fears increased that another regional bank failure, started by New York Community Bancorp (NYCB), would unfold. Buying volumes for Bitcoin are lifting prices, too. Spot Bitcoin ETF inflow continued. Buyers snapped up over $400 million worth of Spot Bitcoin on Feb. 8, according to Coin Telegraph.
CleanSpark (CLSK) renewed speculative interest when it gained a remarkable 72.6% last week. Short sellers, who hold a 9.89% short interest position, would need to cover their bet gone wrong. The firm unexpectedly posted GAAP earnings per share profit of 14 cents. Revenue rose by 165.5% year-on-year to $73.8 million. Watch for CLSK’s stock strength to lift cryptocurrency miner Marathon Digital (MARA) as well.
Risks
Momentum investors would have no fear chasing the BTC-USD rally. However, the market changes its sentiment quickly. This could lead to another sharp sell-off at any time. Still, chances are low that prices will weaken as inflows continue unabated.
