IntoTheBlock, Bitcoin It revealed that the price showed relative strength against the stock market amid the decline in macroeconomic conditions.
Lucas Outumuro noted in a new article that BTC’s price action last week was “remarkable” as the stock market fell.
Outumuro said the Federal Reserve did not increase interest rates as expected, but they predict that fundamental data will increase for another year. As we reported as Koinfinans.com, experts expect two more interest rate decreases by the end of 2024.
…This caused 10-year yields to rise to their highest level since 2007, putting pressure on the markets. The Nasdaq and S&P 500 are down 3.3% and 2.7%, respectively, so far this week. Still, Bitcoin has shown relative strength, staying at $26,600, the same price as last week, and has outperformed over the past 30 days.
NEWS CONTINUES BELOW
Outumuro, Bitcoin priceIt goes on to explain why TL remains stable despite challenging macro conditions. According to the analyst, there are three factors contributing to BTC’s relatively stable price.
- Bitcoin’s correlation with the dollar has reached zero and remains strong despite the rise of the DXY (US dollar index).
- The prospect of a BTC ETF remains a positive catalyst on the horizon, making holders hesitant to sell ahead of time.
- The one-year delay of the refund, in which Mt Gox planned to send 850,000 BTC ($23 billion) to users affected by its hack, has eased the selling pressure that would have been expected if they had started distributions again next month as previously planned.
The analyst also highlighted that Hodlers, or organizations that have kept their BTC dormant for more than a year, currently hold 13.44 million BTC, representing approximately 69% of the current supply.
Overall, this trend seems to indicate that a bullish cycle may be approaching for Bitcoin. While it is unclear how long Bitcoin’s outperformance will last in the deteriorating macro environment, on-chain data shows that long-term investors continue to accumulate regardless.