Bitcoin Falls Out Of Step With US Equities, What This Could Mean For The Crypto Market



Recent
data
shows
that
Bitcoin
has
completely
detached
from


US
stocks
.
This
is
significant
considering
how
the
flagship
crypto
and
these
stocks
had
a
positive
correlation
before
now,
which
undoubtedly
positively
impacted
Bitcoin
and
the


broader
crypto
market
.

Bitcoin
Has
No
Correlation
With
US
Stocks


Data


from
the


market
intelligence
platform
IntoTheBlock


shows
that
Bitcoin’s
correlation
with
the
Nasdaq
100
and
S&P
500
has
dropped
to
-0.78
and
-0.83,
respectively.
This
means
that
Bitcoin
and
these
assets
have
a
strong
negative
correlation,
with
their
prices
tending
to
move
in
opposite
directions. 

How To Get Free Crypto  


Related
Reading

Source:
IntoTheBlock


Indeed,
that
has
been
the
case
for
a
while
now,
seeing
as
the
flagship
crypto
has
been
on
a
major
downtrend
for
a
while
now.
On
the
other
hand,
the
Nasdaq
100
and
S&P
500
have
continued
to
enjoy
considerable
rallies.
Data
from
IntoTheBlock
shows
that
the
Nasdaq
100
and
S&P
500
are
up
over
7%
and
4%
in
the


last
month
,
while
Bitcoin
is
down
over
15%.


A
Bloomberg


report


also
highlighted
the
“collapsing”
correlation
between
Bitcoin
and
US
equities
and
attributed
this
decline
to
the
massive
selling
pressure
the
flagship
crypto
is
experiencing.
Joshua
Lim,
co-founder
of
trading
firm
Arbelos
Markets,
told
Bloomberg
that
this
selling
pressure
caused
by
the
likes
of
the


German
government


has
“put
a
cap”
on
Bitcoin’s
upside
while
these
US
stocks
trade
at
all-time
highs. 


Data
from
IntoTheBlock
shows
that
it
is
indeed
this
selling
pressure
that
has
caused
Bitcoin
to
detach
from
these
US
stocks.
At
the
start
of
June,
Bitcoin’s
correlation
with
the
Nasdaq
100
and
S&P
500
was
at
0.86
and
0.73,
respectively.
However,
this
strong
positive
correlation
began
to
drop
just
as
Bitcoin
miners
began
to
offload
a
significant
amount
of
their
holdings.
Bitcoinist


reported


that
these
miners
sold
over
30,000
BTC
in
June. 


Bitcoin
also
witnessed
increased
selling
pressure
towards
the
end
of
June
thanks
to
the


German
government
,
which
began
to
offload
some
of
the
bitcoins
seized
from
the
pirated
movie
Movie2k.
This
selling
pressure
hasn’t
slowed,
as
the
German
government
has
continued
its

Coinbase Banner  


selling
spree


this
month. 

Moment
Of
Truth
For
BTC
And
The
Stock
Market


Bitcoin
and
US
stocks
will
again
be
tested
when
the
US


Consumer
Price
Index
(CPI)


inflation
data
is
released
on
July
11.
The
much-anticipated
report
is


expected


to
show
that
inflation
in
the
country
is
cooling
off,
further
strengthening
the
case
for
interest
rate
cuts.
Such
development
is
undoubtedly
bullish
for
these
assets,
especially
Bitcoin
and
the
broader
crypto
market. 


Related
Reading


In
the
short
term,
positive
inflation
data
is
expected
to
spark
a
rebound
for
Bitcoin’s
price,
which
is
currently
trying
to


reclaim
$60,000


as
support.
Crypto
analyst
Justin
Bennett


warned


that
Bitcoin
needs
to
hold
above
$57,800
or
risks
dropping
to


as
low
as
$50,000

BTC
fails
to
hold
$59,000
|
Source:

BTCUSD
on
Tradingview.com

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson


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