Bitcoin Rises, Stocks Drop as BTC Correlation with Nasdaq Weakens
Navigasi - While the crypto and stock markets are still in a bear market, Bitcoin's correlation with stocks is near its lowest point this year. The 40-day correlation between the largest crypto asset and the Nasdaq 100 index is now below 0.50, according to Bloomberg data.
|Bitcoin Rises, Stocks Drop as BTC Correlation with Nasdaq Weakens|
Bitcoin is trading at $20,712 at the time of writing, a 2.5% increase in the last 24 hours according to CoinMarketCap. In contrast, US stocks were hit hard on Thursday as investors worried about the Federal Reserve continuing to raise interest rates. It wasn't just the Nasdaq that was receding, global equity markets also took a hit on Thursday (14/7) — along with soaring oil prices as more investors moved to defend their dollars.
Had fallen to the level of US $ 19,000, the price of Bitcoin on Friday (15/7) again perched in the range of US $ 20,000.
Referring to CoinMarketCap data on Friday (15/7) at 13:35 WIB, Bitcoin price is at US$ 20,646.10 or up 0.55% in the last 24 hours.
Bitcoin price rose as traders bet that the Fed will raise interest rates by a full percentage point at its meeting later this month.
Higher interest rates theoretically make high-risk assets such as cryptocurrencies less attractive as investments, so traders follow economic data closely.
“We are still constructive with crypto prices in the second half, but are likely to have some macroeconomic gloom in the near term,” Sean Farrell, Fundstrat's vice president for Digital-Asset Strategy, told CoinDesk.
As a result, the slump in the first half of the year continues, with Bitcoin still trading at less than a third of its all-time high of around $69,000 hit last year.
The crypto industry is also still bleak. The day after crypto lender Celsius filed for bankruptcy protection in the US, it filed court documents acknowledging its $1.2 billion hold on its balance sheet.
The Celsius mining unit last month also auctioned off thousands of mining computers it recently purchased, and prices for "rigs" have slumped to near two-year lows.
While the NFT trading platform, OpenSea cut 20% of employees. OpenSea CEO Devin Finzer said the decision was in effect "a combination of an unprecedented crypto winter and widespread macroeconomic instability".