QCP Capital: Bitcoin is still firmly driven by market sentiment, and this week's Federal Reserve meeting has little impact on it

PANews reported on December 16 that Singaporean cryptocurrency investment firm QCP Capital announced today that Bitcoin (BTC) surged past $106,500 earlier in the Asian session, reaching another milestone. In the past 12 hours, approximately $151 million worth of short positions were liquidated, driving this round of increase. Due to insufficient market liquidity over the weekend and overly complacent traders (Deribit exchange's funding rate turned negative at one point), it led to a squeeze on short positions in the upper range of the market. The ratio of Bitcoin to gold reached a new historical high during this wave, further highlighting Bitcoin's status as "digital gold" and consolidating its position as a more popular store of value than traditional gold.

The inclusion of MicroStrategy into Nasdaq 100 index has further boosted market sentiment. Michael Saylor hinted that even if spot prices exceed $100,000, his company may continue buying Bitcoin. This inclusion could attract passive funds into MicroStrategy stocks indirectly making it easier for the company to raise funds for purchasing Bitcoins.

This week's Federal Reserve meeting seems like insignificant background information for Bitcoin because its trend is still firmly driven by market sentiment. Although unlikely, if both Fed and Powell take an extremely dovish stance it could still provide support for further increases in bitcoin.