- Bitcoin recovers slightly over the $9,000 mark
- The narrative of this new economy could favor Bitcoin bulls
- Bitcoin’s recent price action does not invalidate its correlation with the stock market
Bitcoin News Today – Over the past few months, Bitcoin (BTC) has been tracking the traditional markets. This is another reason why the digital currency has been caught in such a tight trading range since the beginning of May. Recently, the equities market seems to be somewhat stable, with its current correction approaching the heels of a historic rebound, which can be described as a “V-shaped” recovery.
Bitcoin (BTC) Price Today – BTC / USD
A Shifting Global Economic Narrative Could Push Bitcoin’s Price Higher
It does not seem that investors and traders are too confident that the economic damage caused by the global pandemic will come to an end anytime soon. The present range-bound trading in equities is more likely to continue until more data explains the speed at which the economy will recover.
No doubt, this would have a significant influence on the price action of the world’s largest digital currency by market cap in one way or the other. This is because Bitcoin has established a very strong correlation to the stock market. In the short-term, this might work out to the favor of Bitcoin bulls, as a market specialist is pointing out that a shifting global economic narrative could boost the price of Bitcoin (BTC).
At press time, the benchmark digital currency is changing hands at $9,132 after a decrease of about 1.5 percent over the past day. Bitcoin has been stuck around this price range for the past couple of days. The digital currency has even spent the better part of the last few months within the $9k and $10k range.
Bitcoin’s Recent Price Action Doesn’t Break Its Correlation with the Stock Market
The weakness of Bitcoin does not invalidate its correlation to the stock market. Yesterday, buyers tried to push the price of the digital currency over $9,300. However, that seems to be a hurdle point as the rejection at that range pushed the price of the digital currency to its current levels. Bitcoin has established a strong correlation on the stock market over the past couple of months. However, this has not held today.
According to data from Skew – an analytics platform – BTC and the S&P 500- has been a rising correlation recently. All the top indices closed the day in the green because of some data regarding unemployment numbers in the United States. Despite the slight recovery, Bitcoin is showing some major signs of weakness as it recovers slightly over the $9k range.
This correlation could reduce a bit in the short-term as both assets trade sideways. Nevertheless, they may pick back up once the stock market starts trending in one direction or another.