Cryptocurrency markets are making the most of the breather after BTC price bounced from its lowest level since November 2020.
Bitcoin (BTC) continued to strengthen on June 21 when Wall Street opened trading at around $21,500.
BTC/USD hourly chart (Bitstamp). Source: Trading View
Analysts See BTC Stock Correlation Declining
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit $21,633 on Bitstamp, the best reading since June 16.
The largest cryptocurrency managed to avoid new losses in the new week; while they are reserved for the weekend. As such, the futures markets reopened without facing a drop to $17,600.
CME Bitcoin Futures 1-hour candlestick chart. Source: Trading View
While some were planning to short BTC at current levels, broad sentiment among market participants was “wait and see” as US equities opened up. The S&P 500 and Nasdaq 100 each rose about 2.5% at the open.
Popular trader Bier is watching the 200-period moving average (MA) on a four-hour chart. For him to smash it that day would have been a show of strength, something he hadn’t seen in weeks.
Meanwhile, for equities, Bloomberg data showed that Bitcoin was indeed declining its correlation with the Nasdaq 100 quickly. One potential advantage could be that Bitcoin trades less than tech stocks, which boosts its ability to withstand central bank tightening.
As Cointelegraph reported this week, global equities are experiencing their worst quarter on record.
“The drop in risky assets in the first half is driving inflation down at a breakneck pace, which could lead to a re-emergence of pre-pandemic deflationary forces in the second half,” added Mike McGlone, chief commodities strategist at Bloomberg Intelligence, in a June tweet. 20th.
“The main beneficiaries of this scenario could be gold, bitcoin and US Treasuries.”
McGlone also asks if the stock has been “too hot” compared to “maturity bitcoin”.
SHIB hit the headlines for altcoin recovery
The relief has also been noticeable for altcoins as Bitcoin has made gains.
Related: This is not hodling! Over 50% of Bitcoin addresses are still profitable
However, the top 50 cryptocurrencies by market capitalization were led by an unexpected newcomer in the form of the Shiba Inu (SHIB).
The meme-based homage to Dogecoin (DOGE) surged 20% a day after its namesake received fresh assurances of support from Tesla CEO Elon Musk.
Elsewhere, Ether (ETH) was approaching $1,200 at the time of writing, also the highest level since June 16 thanks to a daily gain of 5%.
Hourly candlestick chart ETH/USD (Binance). Source: Trading View
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