Bitcoin Tops $40K, Correlation to Global Markets on Edge: The Weekly Recap

The total cryptocurrency market has managed to recover a considerable chunk of its capitalization, with Bitcoin currently pushing above $40K. However, excluding today, we saw a serious correlation between Wall Street and crypto, but may this be coming to a halt?

Bitcoin’s price recovered over 8% in the past seven days, but let’s break it down. This time last week, things were looking quite depressing, and BTC was failing to break out and dipped on Monday. It spiked towards $39K in the following days, but this was also halted by the bears, who once again pushed the price below $37K.

All of this changed today in a definitive and just as sudden move upwards. In less than 2 hours, BTC was up over 6% and, at the time of this writing, is trading above $40K. The sentiment has shifted from mildly depressing to ecstatic, and it’s interesting to see if this is a fakeout or a break away from the recent downtrend.

Needless to say, the rest of the market followed. Ethereum is up 22.4% currently and is testing $3K. Solana is also up about 23%, trading above $100, while DOT is up 12% and trying to solidify above $20. Of course, there are those who failed to capitalize on the recovery, such as BNB that’s trading flat compared to last week. LUNA, on the other hand, is down 2.3%.

This comes amid some notable correlation with global markets, but it’s also worth noting that today it seemingly came to a halt. Bitcoin’s price surged massively while global indices such as NASDAQ and the S&P 500 also opened in the red.

In any case, it’s very exciting to see what the market has in store for us in the next few days, especially as we come into the weekend when we know anything can happen.

Market Data

Market Cap: $1,736B | 24H Vol: 134B | BTC Dominance: 40.2%

BTC: $40,300 (+8.1%) | ETH: $2,936 (+22%%) | ADA: $1.10 (+5.3%)

MicroStrategy Purchased 660 More BTC for $25 Million. The tech giant spearheaded by one of Bitcoin’s most vocal proponents – MicroStrategy – purchased yet another 660 BTC worth slightly over $25 million at an average price of $37,865 this week. This comes as the cryptocurrency continues to struggle in finding a definitive recovery.

Long-Term Holders and Whales Continue Accumulating Despite the Bitcoin Crash (Research). Despite the turmoil over the past couple of weeks,s long-term holders and whales remain unfazed following the recent crash. Moreover, these entities also appear to be accumulating instead of panicking about the declines.

The Fed and MIT Publish Central Bank Digital Currency Technical Research. The Federal Reserve Bank of Boston, alongside the Massachusetts Institute of Technology (MIT), released joint research on a central bank digital currency (CBDC) that may pave the way for a digital dollar.

European Central Bank Keeps Interest Rates Low And Expects Inflation To Stay Elevated. The president of the European Central Bank, Christine Lagarde, revealed that the Eurozone interest rates will remain at 0%. Lagarde also said that she doesn’t believe inflation will impact the region as badly as the United States.

After a Court Battle, the IRS Might Not Impose Income Taxes on Unsold, Staked Crypto. Cryptocurrency holders in the United States might no longer need to pay income tax on their unsold and staked tokens. This comes following a major precedent set by a Nashville couple that has been staking Tezos.

Solana Woes Worsen in $320 Million (120K wETH) Wormhole Bridge Hack. Wormhole – a bridge between Solana and Ethereum – has been exploited for $320 million earlier in the week in what seems to be one of the biggest DeFi hacks. The team claimed that the funds have since been restored without clarifying how they managed to achieve that.

Charts

This week we have a chart analysis of Ethereum, Ripple, Solana, Binance Coin, and Luna – click here for the full price analysis.