Bitcoin investors follow the stock market closely to gauge the next price movement!
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Answer Bitcoin investors follow the stock market closely to gauge the next price movement!
Bitcoin price has remained almost flat above $23,000 levels after a strong rally in the last two weeks of July 2022.
Currently, investors are confused about the recent rally and Bitcoin approaching the $24,000 level.
According to the latest report from Bloomberg, Bitcoin investors closely follow the US stock market to gauge the mood of the cryptocurrency market.
Over the past month, the price of Bitcoin has increased by 15% in tandem with the rise in the stock market.
According to Bloomberg data, the 90-day correlation coefficient between Bitcoin and the S&P 500 reached 0.65, the highest reading since 2010.Read:Big Demand for Blockchain ETFs According to New Report
The coefficient of 1 means that Bitcoin and stocks are closely related.
Likewise, the parameter -1 shows that they are moving in the opposite direction.
Commenting on this, Mike McGlone, an analyst at Bloomberg Intelligence, commented:
Cryptocurrencies are poised for superior performance.
If the stock reaches the bottom.
There are few forces more powerful in the markets than when the stock market is declining as fast as in the first half.
Cryptocurrencies are part of this ebbing tide.
Last week, data analytics platform Glassnode showed that demand for the Bitcoin network has not fully recovered with price hikes.
The total active bitcoin addresses were within a defined downtrend channel.
Also, on-chain transaction fees were in bear market territory.
Any rise here would indicate recovery.
Analysts at Glassnode reported on these indicators by saying:
The 2022 bear market has historically been negative for the digital asset space.
After this ongoing period of risk-off sentiment, attention turns to whether this marks a bear market rebound, or the start of an ongoing bullish impulse.Read:Bitcoin price sets a new record in 2020 … How much is left to reach the historical peak?
Currently, Bitcoin is witnessing a price rise approaching the level of 24 thousand dollars, to be followed by most of the alternative digital currencies, most of which are also colored green.
The recent rise in the price of cryptocurrencies has made the total market capitalization of the crypto market exceed $1.12 trillion.
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