Bitcoin’s Correlation with Nasdaq Remains High Amid Market Instability
Recent market analysis indicates that Bitcoin (BTC) is facing significant pressure, narrowly avoiding a close below March lows. The current downtrend may reverse due to extreme volatility, with the VIX reaching 60. Despite this, BTC remains up 30% year over year. Key points include:
- BTC's correlation with the Nasdaq is historically high, above 0.5.
- Less panic among BTC holders compared to past market crashes.
- MEXC COO attributes muted selling to institutional investor accumulation amid inflation and recession fears.
- Bitcoin dominance has risen to around 65%, its highest since March 2021.
- Alternative tokens like TRX, OM, and XRP are performing relatively well.
- Standard Chartered suggests XRP could have an FDV of $1 trillion by 2028, a figure seen as unrealistic by some analysts.
- XRP's popularity is driven by retail sentiment, influenced by social media.
This environment reflects ongoing uncertainty in global trade norms and economic stability, impacting crypto investments.