The prices of Bitcoin and Ether recovered quickly to almost 58000 USD after the recent instability caused by Archegos. The topmost cryptocurrency even breached the 58000 USD mark briefly on Monday, which is much higher than the 50000 USD lowest point of last week.
The divergence is a reminder that bitcoin is mostly an independent entity that has a very little co-relation with any other stocks. Last year, the cryptocurrency had a slight synchronization with the US’s 500 Index presented by Standard & Poor. Over the last three months, however, the correlation is non-existent.
Recent Trend Of Bitcoin
US markets saw an enormous selling spree of some stocks on Friday as over 20B USD worth of holdings of Archegos Capital Management, the family office of Bill Hwang, was forcefully liquidated. Traders were contemplating the potential effect across Wall Street on Monday.
Annabelle Huang, a partner at Amber Group, a market-maker based in Hong Kong, pointed out that about 11.05B USD worth of BTC has been withdrawn from just Coinbase in the previous four months. She states that this marks a bullish period for not only Bitcoin but the entire crypto market.
On contrary, Wall Street has been undergoing a decent amount of struggle in the past few weeks. Nasdaq Composite, since recording the highest for a day on 16th February, is currently down by 7%. Bitcoin has reflected the numbers and had gone down 18% on Thursday to a value of 50,458.10 USD.
However, the speed of the recovery to the current price at about 58000 USD signals that investors’ confidence in the largest and oldest cryptocurrency is increasing. Furthermore, the cryptocurrency received an additional boost after Visa announced its intention to support USDC. It is the stablecoin that is the second largest when compared to the US dollar.
