The price of Bitcoin (BTC) has risen in the past 48 hours as the US stock market rose cautiously. The recent correlation between BTC and US stocks has tightened furtherThis shows a strong dynamic in the crypto market.
Holger Zschaepitz, market analyst at Welt, said::
Global stocks are diverging as tensions between China and the US weigh on optimism sparked by Wall Street Tech Rally Asia’s chip stocks after the US announced new restrictions on Huawei’s access to technology and US . Bonds gain 0.68% on 10-year US yields. With gold at USD 1993, Bitcoin stays above USD 12,000 to 12,254. “
Since April, Bitcoin has had a remarkable correlation with the SP 500. Due to the crash of all asset classes at the end of the first quarter of 2020, Bitcoin and stocks rose at the same time.
Buyers support Bitcoin, a positive sign
The correlation between the stock market and Bitcoin was intact for the past week due to the surge in BTC to $ 12,400. On August 17, BTC on Coinbase rose from $ 11,775 to $ 12,486, posting a 3.2% gain.
Bitcoin’s daily price chart. Source: TradingView.com
Researcher of the market analysis company According to CryptoCompare, buyers have been proactively pushing Bitcoin higher for the past 48 hours. they said::
“The percentage of Bitcoin purchased vs. Sales soared above $ 12,000 before the first move, suggesting buyers were propping up the price. Similarly, the second increase also saw the percentage of BTC bought versus that bought by BTC. sold to advance ahead of price, which in turn suggests that buyers were proactively pushing the price higher. “
The US stock market has risen for the past two days on optimism about Big Tech’s performance.
Tesla, Alphabet, and Amazon stocks rose 11.2%, 0.77% and 1.09%, respectively, Driving technique indices such as the Nasdaq.
Data before the market opens shows this The US stock market expects a slight gain as the market opens, and the Dow Jones and Nasdaq also posted gains 54 and 37 points.
The mood is positive, but will there be a decline in September?
Bitcoin price continues to rise in line with the stock market, but some analysts are cautious in September. Historical data shows that Usually September is the worst performing month for Bitcoin.
When both the US stock market and Bitcoin pull back like gold, the cryptanalyst becomes Edward Morra suggested that market turmoil could occur. Wrote::
“If BTC and SPX dissolve like gold, the decent correction for BTC will come in September. for the SPX, November. September is usually the worst month historically for BTC. The November elections could cause some turmoil for the SPX. “
For now, The coincidence of a simultaneous rally between Bitcoin and stocks and the remarkable surge in buying demand are fueling sentiment around Bitcoin.
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