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Bitcoin out of step with US stocks, and what this means for the crypto market

by xyonent
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Bitcoin 13ba82.jpeg

Recent data shows that Bitcoin is completely US stocksThis is significant given that the leading cryptocurrency has been positively correlated with these stocks in the past, and they are arguably the biggest cryptocurrency in the world. The broader cryptocurrency market.

Bitcoin is uncorrelated with US stocks

data from Market information platform IntoTheBlock It shows that the correlation between Bitcoin and the Nasdaq 100 and S&P 500 has fallen to -0.78 and -0.83 respectively, meaning that there is a strong negative correlation between Bitcoin and these assets, meaning that prices tend to move in opposite directions.

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Source: IntoTheBlock

In fact, this has been the case for some time, as the flagship cryptocurrency has been on a steep decline for some time, while the Nasdaq 100 and S&P 500 continue to post strong gains, up over 7% and 4%, respectively, according to data from IntoTheBlock. last monthMeanwhile, Bitcoin is down more than 15%.

Bloomberg report He also highlighted that the correlation between Bitcoin and U.S. stocks has “broken down,” and attributed the decline to the massive selling pressure the leading cryptocurrency is experiencing. Joshua Lim, co-founder of trading firm Arbelos Markets, told Bloomberg that the selling pressure is due to German Government While these U.S. stocks are trading at all-time highs, a “cap” has been placed on Bitcoin’s price rise.

According to data from IntoTheBlock, it is precisely this selling pressure that has caused Bitcoin to diverge from U.S. stocks. At the beginning of June, Bitcoin’s correlation with the Nasdaq 100 and S&P 500 was 0.86 and 0.73, respectively. However, this strong positive correlation began to decline as Bitcoin miners began to sell off significant amounts of their holdings. Bitcoinist report These miners sold over 30,000 BTC in June.

Bitcoin came under increasing selling pressure towards the end of June. German Governmenthas begun selling some of the Bitcoin it seized from the pirate film publisher Movie2k. This selling pressure has not subsided as the German government continues to sell Bitcoin. Selling like crazy this month.

The moment of truth for BTC and the stock market

Bitcoin and U.S. stocks are Consumer Price Index (CPI) Inflation data is due to be released on July 11. The highly anticipated report is Be expected This indicates that inflation in the country is subsiding, further strengthening the case for lowering interest rates. This development is undoubtedly bullish for Bitcoin and the cryptocurrency market as a whole.

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In the short term, Bitcoin prices are expected to rebound once inflation data turns positive, and are currently at Get $60,000 back Supported by crypto analyst Justin Bennett Warned Bitcoin needs to hold above $57,800 or it will Minimum $50,000.

Bitcoin price chart from Tradingview.com
BTC fails to sustain $59,000 | Source: BTCUSD on Tradingview.com

Featured image created by Dall.E, chart taken from Tradingview.com

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