Bitcoin and cryptocurrencies rally strongly as Wall Street crashes

There is a correlation between macroeconomic factors and cryptoassets such as Bitcoin. Tougher and stricter factors negatively increase the volatility of virtual tokens. The same goes for stocks and their markets.

The past week has brought a downtrend to major cryptocurrencies. Bitcoin is seen heading towards the $19,000 region without any anchors. The southward movement of the entire cryptocurrency market has intensified as the Federal Reserve released new interest rate hikes. Also, the stock market has not been excluded from the trend.

Different trends in cryptocurrency and stock markets

But this new week brings a different trend between the crypto market and the stock market. Wall Street kicked off correction mode for most stocks. The three major U.S. stock indexes suffered a 1% correction on Monday, September 26, and suddenly collapsed.

Stocks and commodities tumbled more than 10%, but the MVIS CryptoCompare Digital Assets 100 index fell 1% last month.

Bitcoin and other cryptocurrencies have defied a price drop in the stock market since the beginning of the week. Instead, despite the various possibilities, the price of the cryptocurrency market is following a bullish trend. This caused a huge surprise in and out of the space as the connection to Wall Street failed.

The price of BTC surged towards the $20,000 level. This comes after BTC struggled to reach $19,000 over the past week. Some analysts expect Bitcoin to gradually fall to a 2022 low of $17,500. But the recycling of the coin makes an impressive move for the crypto space.

At the time of writing, BTC is trading at around $19,114, indicating fewer miners. Its market capitalization currently exceeds $387.5 billion. More than $14 million in short positions have already occurred following the sudden rise in Bitcoin’s price.

Bitcoin slows after rising above $20,000 BTCUSDT on Tradingview.com

On-chain Academy report On Bitcoin Mayer Multiple when citing Glassnode data. It noted that multiple stalls were at an all-time low. Furthermore, a comparison with its 200-day moving average shows that Bitcoin is undervalued.

The broader crypto market is experiencing a price rally. In addition to Bitcoin, altcoins such as Ethereum (ETH), Avalanche (AVAX) and Solana (SOL) gained more than 6%. Unlike traditional stocks, this new bullish trend in BTC and other crypto assets shows that the crypto market is resilient to volatility.

Bitcoin Could Destroy Correlation With Stocks

This year, major crypto assets have been more correlated with the U.S. stock market. Bitcoin’s price trend is similar to that of the S&P 500. However, BTC’s new price surge is breaking that link, although only time will tell.

In addition, the decline in Bitcoin whale holdings this year is also worrying. However, despite the uncertainty in the world macro economy, some analysts remain neutral.

On Monday, Katie Stockton, founder of fairlead Strateies LLC, noted that BTC’s rally fits into a short-term indicator. However, most are likely to remain neutral as they expect the rally to fail quickly.

Featured Image From zipmex, Charts From Tradingview



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