The latest market information shows BTC/USD continuing to hover around $29,000 after failing to hold the crucial $30,000 support.
BTC price movements, 15-25 May 2022. / Source: StormGain
As the original cryptocurrency stalls, traders and analysts are chiming in with observations about what the next price movement could be. Some are looking for positive signs from the ongoing World Economic Forum (WEF) Annual Meeting at Davos, while others are pointing to historical chart patterns or highlighting cryptocurrency’s correlations with the wider stock market. Whether Bitcoin is set to plunge below pre-2020 levels or not, there are useful strategies that traders can employ to stay profitable even during a crypto winter.
BTC at the world economic forum
Cryptocurrency was a significant topic at the WEF summit, with multiple panels concerning crypto, DeFi, and CBDCs featuring a mix of thought leaders from the traditional finance, fintech and crypto sectors. Miami mayor Francis Suarez spoke in support of crypto’s innovative uses amidst the bear market: “We live in a world where investors only look at things from a return perspective, but Bitcoin should be seen from an innovative and technology perspective”. Jeremy Allaire, chairman and CEO at Circle Pay, and Brad Garlinghouse, CEO of Ripple, were also present, exploring crypto’s potential for cross-border payments and national stablecoins.
Despite crypto being a hot topic, however, Bitcoin’s market price does not appear to have been meaningfully affected by discussions at the conference this week. Nonetheless, it is a sign that cryptocurrency’s outsider status in the global economic system is a thing of the past. For the moment, if crypto is still being treated mainly as an investment asset, could the wider stock market hold a clue to the next move?
Relation with US stocks
Bitcoin’s market behaviour recently has been closely correlated with US stocks, especially tech stocks. The latter sector, in…
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