Bitcoin (BTC) & Stock Market Correlation is Crumbling! What This Means For BTC Price

The continued downward movement of the price of bitcoin indicates that the rebound in the cryptocurrency markets appeared to be short-lived. There are concerns that the price may not be able to sustain higher levels due to declining volumes as it has once again breached the $20,900 level. At the time of writing, BTC was trading at $20,694 and was up by 0.49 percent in the last 24 hours.

According to the crypto analytics company Santiment, the connection between Bitcoin (BTC) and the stock market is crumbling.

Santiment notes that following the release of the most recent Consumer Price Index (CPI) data on Wednesday, cryptocurrency has been recovering as the S&P 500 and gold have fallen. This is consistent with the fact that Bitcoin and altcoins typically surge when they have a little link with stocks.

ADA Price is down By 70% year-to-date

The firm further points out that the price of Cardano (ADA) has dropped by around 70% since the start of 2022, which has caused a backlash against the rival Ethereum (ETH).

“The last time the crowd was this negative in January, ADA rebounded +24% in 5 days until sentiment turned positive again.”

In the last 24 hours, the price of the Cardano token decreased by 1.05 percent to $0.43. The price of ADA has dropped by 4 percent over the past week.

BTC’s price fluctuated between $22,000 and $19,000 throughout the previous week. Fears of a second severe fall to $17,000 were rekindled by the plunge toward $18,900, but the bulls reacted quickly. When it comes to $18,000, there is good support in case there is a sudden collapse. According to the price analysis, the price appears to be stuck because of the low trading volume and declining volatility.

Was this writing helpful?

Source: https://coinpedia.org/bitcoin/bitcoin-btc-stock-market-correlation-is-crumbling-what-this-means-for-btc-price/