Bitcoin price rises as U.S. stock market recovers, maintaining correlation
The price of Bitcoin (BTC) has risen in the last 48 hours as the US stock market has risen cautiously. The recent correlation between BTC and US stocks intensified further, showing strong momentum in the cryptomarket.
Holger Zschaepitz, a market analyst at Welt, said:
„Global stocks are drifting as US-Sinese tensions weigh on the optimism generated by the Wall St. technology boom. Asian chip stocks declined after the US announced a new set of restrictions on Huawei’s access to US technology. Bonds are up on 10-year US yields at 0.68%. With gold at USD 1993, Bitcoin remains at over USD 12,000 at 12,254.“
Since April, Bitcoin has seen a remarkable correlation with the S&P 500. Due to the collapse of all asset classes at the end of Q1 2020, Bitcoin and the shares rose in tandem.
One trader says that the price of Bitcoin will „explode“ if it exceeds $13,000
Buyers are supporting Bitcoin, a positive sign
The correlation between the stock market and Bitcoin has been intact over the last week due to the sharp rise of BTC to USD 12,400. On August 17, BTC rose from USD 11,775 to 12,486 on Coinbase, posting a 3.2% gain.
Researchers from the market analysis company CryptoCompare said that buyers were proactively pushing Bitcoin upwards in the last 48 hours. They said:
„The percentage of Bitcoin bought vs. sold rose before the first move beyond $12,000, suggesting that buyers were underpinning the price. Similarly, the second rally also saw the percentage of BTC bought vs. sold rise before the price, again suggesting that buyers were proactively driving the price up“.
Bitcoin is now larger than Bank of America and the New Zealand dollar by market capitalization
The US stock market has risen in the last two days due to optimism towards the performance of „Big Tech“.
Tesla, Alphabet and Amazon stocks rose 11.2%, 0.77% and 1.09%, respectively, driving technology indices such as the Nasdaq.
Pre-opening data shows that the US stock market is expecting a slight gain in The News Spy market opening, and the Dow Jones and Nasdaq also established gains of 54 and 37 points.