Bitcoin-SPX Correlation Could Jeopardize Bitcoin’s Rebound: Technical Tuesday
- The cryptocurrency markets were mostly in the green on Tuesday, as BTC prices gradually bounced back to $9,100 levels.
- Data shows that the correlation between BTC and SPX has been increasing again, which could be a renewed concern for crypto traders.
- DeFi tokens have seen notable price actions, with KNC jumping more than 8%.
The cryptocurrency markets were recovering very slowly in Asia on Tuesday after the price of Bitcoin ( BTC) briefly touched $8,800 levels over the weekend. While the BTC price rebounded to the $9,100 area in the early session, the volumes were noticeably lower. The rebound also brought BTC back to the trading range where it spent most of the past month.
Meanwhile, the correlations between the SPX and BTC could be a renewed concern for traders. Data from The Block Research shows that the relationship between the two has returned to March levels, at around 0.31. While the reading is still relatively low compared to April’s levels, the increasing number of new COVID-19 cases in key U.S. states has been a growing concern for the equity markets. Given the recent correlation, a COVID-led correction in the SPX could quickly ripple through the cryptocurrency markets.
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