Bitcoin Holds Steady as US Equities Reach Record Highs: What’s Next for BTC?
Bitcoin clung to modest gains at the July 8 Wall Street open as United States equities hit new record highs, continuing to split from sky-high stocks and gold. The cryptocurrency’s price tug-of-war over the $56,000 mark was highlighted by heightened volatility and thin liquidity over the weekend.
As the S&P 500 and Nasdaq Composite Index achieved new all-time highs, attention turned to upcoming macroeconomic reports and testimony by Jerome Powell, chair of the U.S. Federal Reserve. Market participants, like Keith Alan of Material Indicators, struck a cautious tone, warning of potential new macro lows and the possibility of a quick recovery back above $50,000 to prevent a dump.
The current downturn in Bitcoin, which has seen a 40% drawdown from March’s all-time highs, has some analysts comparing it to previous cycles. Hopes now lie with U.S. spot Bitcoin exchange-traded funds (ETFs) to provide the buyer interest needed to reclaim higher levels, as institutional interest in “buying the dip” has been evident.
While ETF flows were strong leading up to mid-March, they have since slowed down, causing weak price action down to $56,000. The market is now waiting to see if ETFs will once again drive Bitcoin’s price up, as they did during the run-up from $16,000 to $73,000.
As the market continues to navigate through volatility and uncertainty, investors are advised to conduct their own research and make informed decisions when it comes to investing in Bitcoin.