The Fine Line of BTC
“Resilience is the ability to attack while running away.” — Wes Fessler
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BTC was trading at a high until a few days ago, but its inability to break beyond the $28K barrier became a negative motivator for future price fluctuations. As a result, BTC fell below $27k for the first time in October, pushing the risk signal into the high-risk zone.
Significant change is likely once a catalyst occurs, such as a halving or spot ETFs launch. With most altcoins trading in the red, the market cap disparity between large caps and altcoins has only grown.
Despite the Federal Reserve's aggressive rate strategy, consumer price index (CPI) statistics released today showed higher-than-expected inflation numbers, with a yearly increase of 3.7% overall, or 4.1%, when food and energy costs were excluded.
This does not bode well for risk assets because it implies that interest rates will either remain higher or rise for longer, and BTC is a risk asset. Because BTC and ETH have underperformed on the upside, their beta is now smaller on the downside.