Bitcoin (BTC) Dips Under $19,000, More Volatility Likely Ahead
Soon as the U.S. equity markets opened on Tuesday, Bitcoin takes a dive under $19,000 once again. As of press time, the S&P 500 is 1.25% and Bitcoin sharing a greater correlation with the index puts some selling pressure on the world’s largest cryptocurrency.
As of press time, Bitcoin is trading 1.2% down at a price of $18,946 and a market cap of $362 billion. As said, Bitcoin continues to show a greater correlation to the S&P 500 and the 60-day correlation coefficient is at 0.72, just short of the May high. A coefficient of 1 means that the assets are moving in lockstep, however, a negative coefficient means they are moving in the opposite direction.
Speaking to Bloomberg about Bitcoin, John Porter, CIO and head of equities at Newton Investment Management, said:
“Right now, it is very much a proxy for beta in the market. Crypto’s going through growing pains right now. We just don’t know what it’s going to be when it grows up, if you will.”
More Bitcoin Volatility Ahead
The U.S. Federal Reserve will be announcing an interest rate hike on Wednesday, September 21, and so investors are bracing for further volatility. The Fed is determined to bring down the high inflation and hence shall be pulling liquidity out of the market with interest rate hikes.
But despite this, MicroStrategy – the biggest corporate BTC holder continues to make fresh purchases. Tagus Capital’s Ilan Solot said:
“Markets — both crypto and broader — are in full macro risk mode ahead of the FOMC this week. I don’t think MicroStrategy’s purchase moves the needle much. A chunk of the leverage longs, especially in ETH, has been cleared out. So that’s a better technical position, but we still need a positive catalyst to make a difference in sentiment.”
It will be interesting to see whether BTC will touch the June lows of $17,500. It all depends on how the U.S. equity markets perform going ahead.
- Crypto Market Crash: Why Are Bitcoin, ETH, XRP, SOL, ADA Falling Today?
- Arthur Hayes Dumps $5.1M HYPE Bag Weeks After 126x Call, Says He is Buying a Ferrari
- Breaking: Metaplanet Climbs to Fifth Largest Corporate Bitcoin Treasury with New 5,419 BTC Purchase
- Michael Saylor Teases Another Bitcoin Buy As MSTR Stock Dips to Five-Month Lows
- XRP to $9? Analysts Tip ‘XRP Is a Buy’ as Price Targets 200% Surge
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
