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Bitcoin price rises as stock market crashes – is the correlation broken?

Bitcoin price rises as stock market crashes – is the correlation broken?

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Answer Bitcoin price rises as stock market crashes – is the correlation broken?

The cryptocurrency market is witnessing a sudden and unexpected rebound.

Bitcoin soared from $18,000 to $19,000 to cross the $20,000 threshold, with the price up more than 6% in the last 24 hours and currently trading at $20,000.

The rise of Bitcoin coincided with the sinking and decline of the stock market, which made some claim that the Bitcoin disengaged from the rest of the financial markets.

Ethereum is also seeing a strong rally for the first time after the merger upgrade.

Ethereum has rebounded more than 6% in the past 24 hours and is trying to surpass the $1,400 level.

Read:Will the upcoming “EIP-1559” upgrade for Ethereum really solve the fee problem?

Currently, Ethereum is trading at $1381.

as such registered Most of the altcoins with a large market capitalization are rising along with the rise of their leader, Bitcoin.

Has Bitcoin broken the link with the stock market?

The bounce in the cryptocurrency market comes as a surprise because the stock market has seen a massive selloff.

The S&P 500 is down more than 1% while the NASDAQ-100 is down 0.5%.

The cryptocurrency market is usually closely related to the broader financial market.

Coinbase research highlights that cryptocurrencies are tied to the traditional market.

Bitcoin also behaves roughly the same as tech stocks and the tech-oriented Nasdaq.

Prior to 2020, there was no correlation between the two.

For bitcoin to function as a hedge against inflation, it must operate consistently despite the sell-off in the rest of the markets.

Kevin Svensen, one of the main influencers in the crypto space, believes that Bitcoin is still dependent on the stock market.

As speculative dips around the S&P 500 are the reason Bitcoin is back on the rise.

Read:Study: 77% of Saudis are familiar with cryptocurrencies and only 18% are trading them

The same spokesperson revealed that the crypto market bounced back more quickly than the S&P 500.

The pause in the dollar’s rally is also a reason for the strong performance of cryptocurrencies.

Svensen believes that the Bitcoin bulls are hoping the stock market will rise as well.

Otherwise, the cryptocurrency is doomed to fall again.

Key events to watch:

The cryptocurrency market is hoping to see a bounce back in the stock market to increase the positive reaction.

Fed Chairman Jerome Powell’s speech could play a big role in any movement, as he is scheduled to deliver his speech today.

Read also:

After fleeing Singapore…Interpol officially issues a Red Notice against the founder of Project Terra

After Ethereum Integration Upgrade…GPU Price Drops to Lowest Level in China


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