Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a trip to near $21,500.
Analyst eyes diminishing BTC stocks correlation
The largest cryptocurrency managed to avoid fresh losses into the new week; so far, these are reserved for the weekend. As such, futures markets reopened without being subjected to the dip to $17,600.
While some planned to short BTC at current levels, the mood among market participants was broadly one of “wait and see” as U.S. equities opened up. The S&P 500 and Nasdaq 100 both added around 2.5% on the open.
Popular trader Bierre was eyeing the 200-period moving average (MA) on the four-hour chart. For him, breaking it on the day would be a sign of strength not seen for multiple weeks.
To highlight differently why today fight should be all about H4 trend -> May 14-16th.
Post dump rally, broke H4 trend for the first time since > 38-39k, US opened, failed to hold H4 trend back to the lows into days (and eventually weeks) of ranging.
Just some thoughts. pic.twitter.com/TasEwVS5gx
— Bierre (@pierre_crypt0) June 21, 2022
On the topic of stocks, meanwhile, data from Bloomberg showed that Bitcoin was in fact swiftly reducing its correlation with the Nasdaq 100 in particular. A potential benefit could come in the form of Bitcoin trading less like a tech stock, boosting its ability to weather the monetary tightening of central banks.
As Cointelegraph reported this week, global stocks are currently facing their worst quarter in history.
#Bitcoin’s tight relationship w/Tech stocks, fueled by declines in both amid Fed hikes & high inflation, drops amid crypto rout. Bitcoin“s 20d correlation w/Nasdaq 100 has fallen from ~0.88 in early May to the low-0.30’s now, BBG has calculated. pic.twitter.com/0j3fRb6gtJ
— Holger Zschaepitz (@Schuldensuehner) June 21, 2022
“Plunging risk assets in 1H are taking away inflation at a breakneck pace, which may translate into pre-pandemic deflationary forces resurfacing in 2H,” Bloomberg Intelligence chief commodity strategist Mike McGlone added in part of a tweet posted June 20.
“Primary beneficiaries of this scenario may be gold, Bitcoin and US Treasury long-bonds.”
McGlone additionally queries whether stocks were “too hot” versus a “maturing Bitcoin.”
SHIB headlines altcoin rebound
On altcoins, relief was also visible as Bitcoin made strides higher.
The top fifty cryptocurrencies by market cap were led by a surprise mover, however, in the form of Shiba Inu (SHIB).
Elsewhere, Ether (ETH) neared $1,200 at the time of writing, also its highest since June 16 on the back of 5% daily gains.
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