Bitcoin price action rally correlates with Wall Street stock market rally

lupafilotaxia (75)in Project HOPE • 2 years ago

Hello dear readers and followers, especially friends of the @LeoFinance community, let me take this opportunity to share some perspectives on Bitcoin's price action in recent days and its high correlation with the stock market rally that Wall Street has been experiencing.

Before getting into the subject, it is first necessary to put ourselves in context as during the last few days Bitcoin's price action has maintained a stability that has flooded the cryptocurrency market with optimism and this is something really surprising, as despite the great pressures coming from the macroeconomic and geopolitical arena, the $20,000 level has proven to be a psychological barrier with a rather special strength as it has not yet been broken with force in search of the next support at $22,000.

Now, let's keep in mind that over the past three months every time Bitcoin's price action recovers it has mostly traded between $18,000 and $20,000, plus however, the current momentum is on par with Wall Street stock markets, which have posted gains earlier in the week, and additionally the US dollar index DXY hit a 20-year high last month and has fallen slightly.

The decline of the US dollar DXY, at the same time as the rise of risk markets, may indicate that some are investing instead of holding dollars. Given this, some experts believe that if the dollar's decline continues it would boost Bitcoin and the rest of the cryptocurrencies, hence it may be a good time to buy now and sell when the DXY finishes retreating.

Add to this the fact that major stocks on Wall Street exchanges have stepped on their yearly lows last week while Bitcoin has not returned to its lowest price touched in June. Reason why some see this as an indicator of strength in the cryptocurrency market.

In this sense, Bitcoin could continue to rise with falling DXY and rising stock markets therefore I would like to know your appreciation on, if indeed the rally in Bitcoin price action correlates with the rise in Wall Street stock markets.