) dropped 3.3% on May 14, retesting the $61,000 support level, which was quickly defended. More importantly, this correction marked the second failed attempt within a week to surpass $63,500. Despite the less-than-optimal price action, Bitcoin bulls remain confident, as shown by BTC derivatives metrics.Trader and analyst Cryptotoad was impressed by how long the $60,500 support level has held.
Some argue that inflation is inherently positive for Bitcoin’s performance due to its strict monetary policy. However, during initial phases of fear and uncertainty, investors tend to seek cash and short-term bonds. Yields on 2-year U.S. Treasury notes dropped to 4.84% on May 14 from 5.03% on May 1, indicating that traders are paying a higher price for these fixed-income instruments.
It might seem counterintuitive to seek protection from an economic recession in U.S. Treasurys, but these assets are considered the safest as they are directly backed by the government, unlike money market funds managed by financial institutions. Therefore, while higher-than-anticipated inflation data should have triggered negative sentiment for Bitcoin, this was not reflected in derivatives data.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.‘Sic AIs on each other’ to prevent AI apocalypse: David Brin, sci-fi author
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