Bitcoin has experienced a correction after failing to break the $28,000 resistance level, with fear dominating sentiment in the market. However, Bitcoin has still outperformed traditional assets like gold and Treasury Inflation-Protected bonds. The current market capitalization of Bitcoin is $520 billion, surpassing Visa and Exxon Mobil. The strong performance of the US Dollar Index and the profitability of top companies may reduce interest in alternative hedge instruments like Bitcoin. Bitcoin derivatives metrics show declining demand from bulls, with the futures contract premium at its lowest level in four months and the options market indicating decreased optimism among investors. The negative sentiment towards cryptocurrencies may hinder Bitcoin’s price from breaking above $28,000 in the short term.
