After bleeding for several months now, the cryptocurrency space is now recovering and heaving a sigh of relief. Bitcoin price, which was hovering below $22k during the bear market, has now been maintaining its price range above $23,000 since mid-July.
However, investors are in a dilemma: is this recovery a sign of a strong trend reversal or just another bull trap?
A recent report from Bloomberg suggests that bitcoin investors are leaning towards the performance of the US stock market to understand the crypto market, as the price of BTC surged 15% in July alongside the stock market.
According to a Bloomberg survey, Bitcoin’s 90-day correlation coefficient and the S&P 500 have hit 0.65, which is the highest reading since 2010. A reading of 1 or above would indicate a significantly high correlation between Bitcoin and the stock market. However, if the reading says -1 it means that both are moving opposite to each other.
Meanwhile, Bloomberg analyst Mike McGlone believes that there is a high chance that the cryptocurrency will overtake them if the stock market falls.
Bitcoin Active Address & On-Chain Transaction Fee Plunge
Additionally, Glassnode has revealed that the rise in the price of bitcoin has failed to affect network demand for the currency as there are still only a few traders and investors willing to make a strong commitment, no matter what happens in the market. be wrong.
An analyst at Glassnode says that the 2022 bear market has been one of the worst ones in crypto history. Hence, after cryptocurrencies have experienced such a pullback, one needs to think: Is this a bull recovery rally, or are the bears merely ‘taking a break’?
There was some market uptick for bitcoin and cryptocurrencies during the past week. BlackRock, the world’s largest wealth manager, has partnered with cryptocurrency exchange Coinbase to introduce its professional clients to cryptocurrencies.
