The quick recovery to near $58,000 demonstrates stronger confidence from investors in the oldest and largest cryptocurrency.
WELCOME TO MY POST
Bitcoin (BTC) trading around $57,626.86 as of 20:00 UTC (4 p.m. ET). Climbing 4.38% over the previous 24 hours.
Bitcoin’s 24-hour range: $54,826.06-$58,353.53 (CoinDesk 20)
BTC trades between its 10-hour and 50-hour averages on the hourly chart, a sideways signal for market technicians.
Bitcoin proved resilient to the latest instability in traditional markets, as the No. 1 cryptocurrency by market capitalization rose above $58,000 briefly Monday, well above last week’s low around $50,000.
The divergence offers a reminder of how bitcoin, which traded lightly in sync with the Standard & Poor’s 500 Index of U.S. stocks for most of last year, is now more or less back to doing its own thing: The 90-day correlation between the two has dropped to zero.
Some U.S. stocks went through an unprecedented sell-off on Friday after the forced liquidation of more than $20 billion in holdings linked to Bill Hwang’s family office, Archegos Capital Management. On Monday, stocks were mixed as traders weighed the potential fallout on Wall Street.
“We are still getting reports of continual liquidation by prime brokers on the Street,” Annabelle Huang, partner at Hong Kong-based market maker Amber Group, said. “But from a crypto-centric perspective, we observed 208.8K BTC ($11.05 billion worth) was withdrawn from Coinbase in the past four months, which is a bullish sign for bitcoin and the crypto market.”