Bitcoin jumped above $35,500 - what's happening?

The price of Bitcoin has soared to new five-day highs above $35,500.

Expectations of a looser Fed policy are supported by BTC.

Short sellers of Bitcoin may experience a "Santa Claus squeeze" in the near future.

In 2023, Moody's reported 609 large stablecoin depegs.

In the American session, Bitcoin surged by almost $1,000, reaching five-day highs of over $35,500.

Near the $35,000 mark, Bitcoin (BTC) is being held steady as weaker US employment data suggests a more relaxed Federal Reserve policy, according to Bitfinex. Since September 2023, there has been a notable decrease in the correlation between BTC and the tech-heavy Nasdaq Index, which has historically had a strong price correlation with digital gold. Simultaneously, the correlation with the traditional precious metal has increased to 0.8.

Matrixport has observed recent macroeconomic developments that could indicate a potential rally in cryptocurrency. Altcoins have seen higher beta, which further strengthens this signal. Historically, Bitcoin has had positive dynamics towards the end of the year, with an average growth of 23% in the two months prior to Christmas (November and December).

According to a report from the Office of the Inspector General of the US Securities and Exchange Commission (SEC), the department is having difficulty recruiting crypto experts due to the reluctance of the right talent to sell their digital assets. The document states that the ban on officials "harms recruitment."

Moody's has unveiled a new Digital Asset Monitor (DAM) tool, which incorporates artificial intelligence, to assess the risks associated with stablecoins. This tool will be especially beneficial to crypto investors, as it will enable them to monitor cases of delinking between an asset and its collateral.

Moody's Analytics reported that 609 instances of large-cap stablecoins losing their peg to the underlying asset occurred in 2023.

Since the start of the year, Tether (USDT) - the largest stablecoin - has seen its capitalization grow by 22%, reaching $85.42 billion, according to IntoTheBlock. DeFiLlama also reported that Tether has accumulated up to 69% of the funds placed on the digital currency market with real collateral.

DZ Bank, Germany's third largest bank, has declared the commencement of its own platform for the preservation of digital assets. The bank intends to provide institutional investors and private customers the chance to buy cryptocurrencies in the future.

Rain Lõhmus, co-founder of the Estonian LHV Bank, has lost the password to a wallet containing 250,000 ETH (valued at more than $473 million). He is now attempting to recover the password using artificial intelligence.