The crypto market has been experiencing a bearish trend in the past few months. Famous cryptos like Bitcoin and Ethereum investors have been concerned about the Federal Reserve leading them to hesitate to further support the crypto. The crypto community has also been misunderstanding the fundamentals of the asset class promoting the bearish trend.
However, this past week, Bitcoin (BTC) has been showing an unpredicted incline. BTC has moved above the range of $18k to $19k. There has been an increase of 5% in the last 24 hours, currently, it is at $21.5k at the time of writing. This has taken the entire community by surprise as BTC has been increasing contrary to the trends in the crypto market.
Ethereum has been experiencing a bullish rally since the merge. Ethereum spiked to 6% in the last 24 hours steadily closing distance with the $1.4k mark, currently, at $1381.
Coinbase research has established a relationship between crypto and the traditional market with a beta of 2. Particularly, the tech stocks and NASDAQ has had a correlation with the crypto market since 2020. Bitcoin wishes to act like an inflation hedge, however, to achieve this it will need to perform well even if the market decline.
Crypto influencer Kevin Svenson tweeted out about the unpredicted BTC upward trend. Although BTC is currently going against market trends, Svenson still believes that it is dependent on the stock market. He mentions that BTC is not recovering as fast as S&P 500, but the drop is not as drastic either.
Svenson wishes for the stock market to begin a rally as well, or else he fears that the BTC prices will drop once again in the absence of stock market support.
The community is now waiting for Fed chair Jerome Powell’s speech to take place as it will heavily influence the crypto market. The speech is set to take place today.
