Bitcoin hits $56k as US stocks post new all-time high
Bitcoin clung to modest gains at the July 8 Wall Street open as U.S. stocks hit new record highs.
Bitcoin continues to split from sky-high stocks, gold.
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin (BTC) price traction at the $56,000 mark.
Amid heightened volatility, spot prices slipped through the weekend in thin liquidity, hitting volatility after the July 7 weekly close before resuming in the Asian trading session.
Crypto markets continued to decline again as the S&P 500 and Nasdaq Composite Index hit new highs for the day, continuing to diverge widely from risk assets.
“Stocks and gold have been rising since the beginning of last week, but crypto prices have gone the other way,” trading firm QCP Capital said in part in a recent announcement to Telegram channel subscribers.
So attention was focused on the coming week's macroeconomic reports and the testimony of US Federal Reserve Chairman Jerome Powell.
“FED Chairman Powell's testimony on Tuesday and comments on Wednesday or some crypto-related legislation could give investors a boost,” Keith Allan, founder of Trading Assets Material Indicators, wrote in part of his latest analysis at X.
Like many market participants, Alan struck a very cautious tone when it came to Bitcoin, warning that new macro lows could still easily occur.
“The market can test your conviction at $48K per week,” he continued with a chart showing one of Material Indicators' proprietary trading tools that show key support lines.
“If this is the case, a quick recovery above $50k is critical to prevent a dump to test support at the 2-year trend line.”
Allen noted that March's all-time high of 73,800 is something he's been looking at since the 40% decline in Bitcoin's block subsidy halved the event a month later.
“This retracement is not only the deepest of the cycle so far, but it's also officially the second-longest retracement of the cycle (49 days),” noted trader and analyst Rect Capital continued on the topic, comparing the current decline to previous ones.
Prospects lie with Bitcoin ETFs.
Others had hoped that US spot Bitcoin exchange-traded funds (ETFs) could provide the buyer interest needed to regain higher levels.
Related: BTC Price Has ‘Double Top' Risk — 5 Things to Know in Bitcoin This Week
These last trading day on July 5 saw another $143 million in net inflows, the highest in a month and driven by institutional demand to “buy the dip”.
“The run from $16k to $73k was largely driven by ETFs, following the buzz buy-the-news event,” Sina Gee, co-founder and chief operating officer of bitcoin hedge advisory firm 21st Capital, wrote in a recent analysis piece on X.
“Through mid-March, ETF flows were very strong and the market rallied. Since then, ETFs have cooled and loss flows have taken over, leading to weak price action down to $56K.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
