The first and second cryptocurrencies in the market leave gains in the last seven days of 15% and 23%, respectively, while in the rest of the altcoins, they also remain on the rise. The strong rise of Shiba Inu stands out, which has already exceeded 40%. In this way, investors turn their eyes towards risky assets.
The bullish cycle happened on Friday, when Bitcoin managed to break above the $40,000 area, a price level that had been a major support throughout the previous bullish phase and had now become a control zone. However, according to data compiled by Coindesk, bitcoin trading volume on major centralized exchanges over the weekend was down significantly from Friday, but has been in line with most days of the past week, when it was reduced, as the major cryptocurrency markets in Asia were closed for the Lunar New Year holidays.
Global markets have fluctuated in recent weeks as investors eye the prospect of monetary tightening. After hitting a record high of $69,000 in early November, Bitcoin lost up to 50% of its value in what has been dubbed a “crypto winter.”
“On a fundamental level, little has changed for Bitcoin since last Friday, so we could be seeing a bit of a contraction in the market,” said Nathan Batchelor, Lead Bitcoin Analyst at SIMETRI Research. “A quick look at the order book data shows that the market is still shorted, so a rally to break above the $43,000 level could see the current upside move towards the $43,000 level. $s45,000″.
The correlation with the technological
In recent months, an increasingly close relationship has emerged between Bitcoin and stock market indices, in particular with the Nasdaq 100 index, mainly of technology stocks. The correlation between the Nasdaq and Bitcoin stands at 0.43.
The short-term uptrend in the queen of cryptos kicked off on Friday following the better-than-expected US jobs report and strong results from Amazon. Cryptocurrency has been correlated with risky assets in recent months as it is perceived this way by traditional asset managers.
Previously, cryptocurrency prices were under pressure due to growth, and risk assets were under fire due to anticipated interest rate hikes from central banks. Additionally, Facebook’s earnings report dented investor sentiment. However, “cryptocurrency traders turned bullish following Amazon’s better-than-expected earnings report, as did Google, Apple, and Microsoft. Positive earnings from these companies helped rekindle investors’ risk appetite.” investors and helped push cryptocurrency prices higher,” concluded Naeem Aslam, Head of Research at Avatrade.
Source: Ambito
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