Analysis: The sentiment in the cryptocurrency market has reversed, and the investigation surrounding Federal Reserve Chairman Powell may inject a "risk premium" into Bitcoin

The cryptocurrency market experienced the largest short squeeze since the "1011 crash" this week, with investor sentiment shifting from fear to greed.

Nicolai Sondergaard, a research analyst at the crypto data analytics platform Nansen, stated that the uncertainty regarding the independence of the Federal Reserve and rising geopolitical concerns are structural bullish factors for Bitcoin. Although precious metals remain the main beneficiaries in the current market environment, Bitcoin is increasingly becoming part of the discussion as an alternative reserve asset, and the criminal investigation into Federal Reserve Chairman Jerome Powell could bring a "risk premium" to BTC. Market data shows that Bitcoin's price has risen 10.6% year-to-date, while the U.S. Dollar Index (DXY) has increased by 0.75% during the same period.