The “Fast Money” trader has shared his take on Bitcoin’s recent recovery
This, according to the analyst, explains why it is sensitive to the “debt ceiling” drama that recently started dominating headlines in American business media:
It is starting to respond to stuff like the debt ceiling drama and higher inflation.
He further notes that the correlation between Bitcoin and oil is actually positive on a 30-day rolling basis, which signals that institutional investors are increasingly using the benchmark cryptocurrency as an inflation hedge.
Kelly is also convinced that the possible approval of a futures-based Bitcoin exchange-traded fund has emboldened the bulls:
Both of these things are tailwinds here.
Bitcoin is currently up 32 percent over the past 10 days after reclaiming the $55,000 level earlier today.