How Bitcoin's High Correlation to Stocks Could Trigger a Drop to $8,000

The lack of a CME Bitcoin futures premium, unrelenting record inflation, and investor concerns about the economy are all factors that weigh on the price of BTC.< /p> Market analysis
The Bitcoin (BTC) price chart for the past two months reflects nothing more than a bearish outlook and it's no secret that the cryptocurrency has been consistently hitting lows since it first broke. crossed the $48,000 mark at the end of March.

Bitcoin price in USD. Source: TradingView
Curiously, the difference between support levels has widened as the correction continues to undermine investor confidence and risk appetite. For example, the last base line of $19,000 is almost $10,000 away from previous support. So, if the same move were to occur, the next logical price level would be $8,000.
Traders fear regulation and contagion
On July 11, the Financial Stability Board (FSB), a global financial regulator comprising all G20 countries, announced that a framework of recommendations for the crypto sector was expected in October. The FSB added that international regulators must oversee crypto markets in accordance with the principle of “same business, same risk, same regulation”.

In a speech written on July 12, Jon Cunliffe, Deputy Governor for Financial Stability at the Bank of England, said that crypto was sort of over and should no longer be a concern. Cunliffe added: "Innovation must happen within a framework...

Crypto Jul 14, 2022 0 50 Add to Reading List

How Bitcoin's High Correlation to Stocks Could Trigger a Drop to $8,000

The lack of a CME Bitcoin futures premium, unrelenting record inflation, and investor concerns about the economy are all factors that weigh on the price of BTC.< /p> How Bitcoin's strong correlation to stocks could trigger a drop to $8,000 Market analysis

The Bitcoin (BTC) price chart for the past two months reflects nothing more than a bearish outlook and it's no secret that the cryptocurrency has been consistently hitting lows since it first broke. crossed the $48,000 mark at the end of March.

Curiously, the difference between support levels has widened as the correction continues to undermine investor confidence and risk appetite. For example, the last base line of $19,000 is almost $10,000 away from previous support. So, if the same move were to occur, the next logical price level would be $8,000.

Traders fear regulation and contagion

On July 11, the Financial Stability Board (FSB), a global financial regulator comprising all G20 countries, announced that a framework of recommendations for the crypto sector was expected in October. The FSB added that international regulators must oversee crypto markets in accordance with the principle of “same business, same risk, same regulation”.

In a speech written on July 12, Jon Cunliffe, Deputy Governor for Financial Stability at the Bank of England, said that crypto was sort of over and should no longer be a concern. Cunliffe added: "Innovation must happen within a framework...