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Bitcoin and Cryptocurrencies Strong Backlash as Wall Street Crashes

There is a correlation between macroeconomic factors and crypto-assets like Bitcoin. Harsh and more demanding factors negatively increase the volatility of virtual tokens. This also applies to stocks and their markets.

The last week has brought downtrends to major cryptocurrencies. Bitcoin was seen heading into the $19,000 region without an anchor. The move southward by the entire cryptocurrency market has become more dramatic as the US Federal Reserve announced another rate hike. Nor was the stock market removed from the trend.

Different trends in the crypto and stock markets

However, this new week makes a difference in crypto and stock market trends. Wall Street has entered correction mode for most stocks. The top three US indices had a sudden meltdown as he showed a 1% correction on Monday Sept. 26.

Stocks and commodities are down more than 10%, while the MVIS CryptoCompare Digital Assets 100 Index is down 1% last month.

Bitcoin and other cryptocurrencies bucked the stock market price decline from the start of the week. Instead, crypto market prices are following a bullish trend despite all odds.

BTC price surged at the $20,000 level. This was after the past week of struggles in which BTC reached his $19,000. Some analysts expected Bitcoin to gradually drop to his 2022 low of $17,500. However, the token has made an impressive move to the crypto space with its payback.

At the time of writing, BTC is trading around $19,114, indicating a drop in miners. Currently, its market cap is over $387.5 billion. A sharp rise in the Bitcoin price has resulted in the liquidation of over $14 million in short positions.

Bitcoin slows down after mounting l BTCUSDT above $20,000 on Tradingview.com

on-chain college report About the Bitcoin Mayer Multiple while citing Glassnode data. We noted that multiple stalls are at historically low levels. Furthermore, we can see that Bitcoin is undervalued when compared to the 200-day moving average.

The broader crypto market is experiencing price increases. In addition to Bitcoin, altcoins such as Ethereum (ETH), Avalanche (AVAX) and Solana (SOL) rose more than 6%. This new bullish trend for BTC and other crypto assets shows that unlike traditional stocks, the cryptocurrency market is resilient to volatility.

Bitcoin Could Break Its Correlation With Stocks

Major crypto assets have been highly correlated with the US stock market this year. Bitcoin’s price trend was similar to that of the S&P 500. But BTC’s new price surge is breaking the link, but only time will tell.

There are also concerns that bitcoin whale holdings are declining this year. But some analysts remain neutral despite global macro uncertainty.

On Monday, Fairlead Straties LLC founder Katie Stockton said BTC’s rebound is a good short-term gauge. However, most people expect it to fail quickly on bounce, so it may remain neutral.

Featured Image From zipmex, Charts From Tradingview

Bitcoin and Cryptocurrencies Strong Backlash as Wall Street Crashes

Source link Bitcoin and Cryptocurrencies Strong Backlash as Wall Street Crashes

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