Bitcoin is performing better than many traditional asset classes in the current market environment. Since the beginning of the Iran tensions $BTC (+0%) up around 10.7 percent since the start of the Iran tensions, while the Stoxx 600 and #gold recorded significant losses.

In the short term, price performance was negatively impacted by the unwinding of a short squeeze and restrictive signals from the US Federal Reserve. Around USD 500 million in short positions were liquidated, while at the same time larger sales by so-called whales continue to indicate fragile market sentiment.

Capital flows remain positive overall and are heading for a fourth consecutive week of inflows, but are increasingly sensitive to macroeconomic stimuli. After the FOMC meeting, sentiment turned around in the short term, underlining the high reaction speed of the market.

With significantly lower expectations of interest rate cuts and ongoing geopolitical risks, the environment remains challenging. Nevertheless, the relative strength suggests that Bitcoin is increasingly establishing itself as a macro asset in its own right.

(Text by CoinShares' Head of Research, James Butterfill).

Via the following $CS (+0%) - ETP you can also invest in Bitcoin: $BTC (+0%)