US stock futures provide clues to Bitcoin’s next move
The correlation between Bitcoin and the important indices on the US stock exchange is high. Market experts currently see Bitcoin primarily oriented towards the S&P 500. How is the leading cryptocurrency viewed in the medium term?
Bitcoin remains in the range
Bitcoin is gradually stabilizing on a longer time axis and has recently maintained prices above the significant $20,000 mark. Still, the leading cryptocurrency by market capitalization has not yet been able to demonstrate consistent upwards performance in 2022, let alone test the all-time high just under $69,000 from November 2021.
Macroeconomic reasons for Bitcoin’s stagnation are clearly visible, as Bitcoin no longer operates independently of trends in the traditional stock markets. This principle becomes evident once again in a closer look at the Nasdaq 100 and S&P 500. These two indices represent the mood of US tech and blue-chip stocks. Bitcoin’s course shows particularly high correlations with these indices, so that one largely follows the other.
Upswing or continuation of the range for Bitcoin?
Traders can currently orient themselves by observing US stock futures, which can be monitored around the clock to some extent and indicate how the Wall Street stock exchange will open. Experts predict minimal profit-taking and slight sell-offs, thus pointing to stable trading and price trends. Should no major surprises disturb US stock futures, Bitcoin currently appears likely to remain in the current price range.
Bitcoin’s prospects for breaking out also depend on the Fed’s interest rate decisions and inflation statistics in the US. Both of these factors inevitably influence traditional stock markets, which in turn reflect on BTC. There is hope that US Federal Reserve policy will become consistent enough to provide favorable conditions both for economic growth and for a temporary Bitcoin rally.
Conclusion
Bitcoin now often depends on the traditional stock markets, especially as global economic conditions impact investor sentiment towards cryptocurrencies. With US stock futures providing continuous insights into market sentiment, they play a crucial role in forecasting Bitcoin’s short-term price direction. Traders should keep an eye on the correlation between Bitcoin and key stock market indices like the S&P 500.
Leave a Reply