Risk Proxies Challenge Bitcoin's Bounce; HYPE, XMR Shine

Bitcoin's recovery is facing resistance as it attempts to surpass $110,000, following a 1% increase in the CoinDesk 20 Index and substantial gains in specific tokens like HYPE and XMR. Sentiment on social media remains bullish, driven by expectations of a 25 basis point rate cut by the Federal Reserve. However, a strengthening dollar and poor performance from risk proxies such as the iShares iBoxx High Yield Corporate Bond ETF indicate potential challenges for Bitcoin's price recovery. Recent banking stress has been cited as a contributing factor to Bitcoin being held back, though some analysts suggest the possibility of a resurgence due to lower bond yields and aggressive Fed easing. Additionally, the oil market has seen a 4% rise, adding to overall market volatility that may further impact risk appetite. Open interest in HYPE futures has significantly increased, reflecting heightened demand for bullish exposure, while the volatility metrics suggest ongoing uncertainties in the market. Overall, Bitcoin's dominance is slightly down to 59.79%.

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