A 30-day correlation coefficient for Bitcoin and MSCI Inc.’s gauge of world stocks now sits at minus 0.23, the most negative since the onset of the pandemic in early 2020.
This data corresponds with the expectation that falling bond yields and rallying equities, combined with a potential Federal Reserve policy reversal, would also benefit crypto like Bitcoin, often seen as harbingers of high-risk investment appetites.
Bitcoin’s Cautious Trajectory Amid ETF Anticipation
Furthermore, the dynamics of Bitcoin’s market behavior have so far proved to be notably influenced by anticipations surrounding US spot exchange-traded funds (ETFs) investing directly in BTC. Bitcoin had already surged over 100% in 2023, fueled by optimism over regulatory approvals for these spot ETFs.In the past week, the asset has seen quite a retracement, dropping from trading above $37,000 last week to a current trading price of $36,434, at the time of writing.
Further Sentiments On Bitcoin
Alongside Sycamore’s insights on Bitcoin’s price movements, other experts and analysts have shared their perspectives on this leading cryptocurrency. Financial commentator Tedtalksmacro pointed to a notable increase in open interest, hinting at possible significant market shifts or ‘fireworks’ ahead.
Another analyst, CryptoCon, predicts a surge in Bitcoin’s price. CryptoCon analysis suggests Bitcoin is entering its fourth mid-cycle phase, a crucial period for forecasting the crypto’s future direction. According to the analyst, this phase could lead BTC to a ‘mid-top’ cycle peak, potentially reaching around $45,500.
Conversely, JPMorgan analysts have expressed skepticism about the recent rally in the crypto market, suggesting it might be more speculative than substantive. Their adopts a cautious tone, hinting that the market’s enthusiasm might not be fully grounded in strong fundamentals.
The analysts further highlighted the possibility of a ‘buy the rumor, sell the fact’ situation following the approval of a spot Bitcoin ETF, indicating a potential downturn after the initial hype. Featured image from Unsplash, Chart from TradingView