Bitcoin and US stocks used to be best buddies, their prices moving in the same direction. But lately, they’ve gone their separate ways.
Bitcoin’s New Direction
Data shows that Bitcoin’s correlation with the Nasdaq and S&P 500 has flipped from positive to negative. This means they’re now moving in opposite directions. While US stocks have been on a roll, Bitcoin has been taking a nosedive.
This shift is partly due to a lot of selling pressure on Bitcoin. Miners have been offloading their holdings, and the German government has been selling bitcoins seized from a pirated movie website.
What’s Next for Bitcoin?
The upcoming US Consumer Price Index (CPI) inflation report on July 11th could be a big moment for both Bitcoin and US stocks. If inflation is cooling down, it could boost both assets, especially Bitcoin.
But Bitcoin is facing some challenges. It needs to hold above $57,800 or it could drop to $50,000.
So, while Bitcoin’s breakup with US stocks is a big deal, the future is still uncertain. The next few weeks will be crucial for determining whether Bitcoin can regain its footing.
