Bitcoin Price Has Increased On Last Month And Here’s Why

Bitcoin prices have recently risen, gaining more than 4% in less than 24 hours and then holding on to the majority of their gains.

According to the latest data, the world’s largest digital currency by market value surged to $39,446.80 earlier today.

The cryptocurrency rose to this level after plunging to around $37,700 the night before, its lowest level in some weeks.

The digital asset witnessed considerable volatility after soaring to its intraday peak, dipping below $38,500 before recovering to more than $39,000.

At the time of this writing, the cryptocurrency was trading close to $39,250, very close to its intraday high.

Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

When it came to explaining bitcoin’s recent gains, several analysts offered input on the matter, identifying several potential causes of this appreciation.

Bitcoin’s Recent Relationship With Stocks

Many of these market observers emphasized the notable correlation between stocks and bitcoin.

Arer gains in equities helping to fuel the digital asset’s recent price appreciation, the answer is “Yes, correlation with stocks is currently driving Bitcoin’s price,”.

“The correlation between equity markets and BTC is at an all-time high.”

The described the situation as being unfortunate, “because, historically, the lack of such correlation was one of the main reasons for purchasing BTC (or virtually any cryptocurrency, for that matter).”

Let’s look at the relationship between bitcoin and equities, although he focused specifically on the shares of tech companies.

“The key story with bitcoin price continues to be its correlation with tech stocks (which is at all-time highs),”.

“As a result, the slate of tech earnings we’ve seen this week have been driving the daily trading in bitcoin,”.

Further, he noted that “the quarterly reports coming out this week have been directly contributing to the price action we’re seeing in Bitcoin.”

Broader Market Developments

Some analysts offered different explanations, citing a range of factors when explaining bitcoin’s latest price movements.

“Treasury yields, credit, relative dollar strength (against global fiats), and legacy market volatility are telling the story right now,”.

“The bitcoin chart is a function of these markets,”.

We identified multiple variables as driving the digital currency’s recent price action.

“The significant intra-day volatility has mostly been driven by the Nasdaq and bitcoin correlations.

“Earnings reports throughout the week have also added to pre and post US legacy hours volatility,”

“Additionally, crypto markets have been highly sensitive to Elon’s Twitter acquisition announcements, likely in the belief of increased digital asset-connectedness to the platform in the future,” the expert stated.

While bitcoin and stocks often move together, the digital currency’s recent gains were a result of investors’ desire for risk-on assets.

Bullish Outlooks

Going forward, the current market conditions could prove highly favorable for bitcoin prices..

“So far in 2022, Bitcoin has essentially acted as a 24/7 inverse VIX (S&P 500 volatility index). Bitcoin stackers and HODLers are accumulating, while Wall Street risk shops are de-risking,”

“Correlation will likely remain strong for the time being as a de-leveraging of the global everything bubble takes place,”.

“Bitcoin is primed for vast outperformance following the reversal of hawkish central bank policy, based on accumulation data and very risk off derivative markets,”