Bitcoin is trading at 17 thousand dollars
Cryptocurrencies have been having some hard time for a while and especially Bitcoin has hit the lowest.
Stocks closed lower on Tuesday as investors moved cautiously ahead of Fed Chairman Jerome Powell's speech on Wednesday, likely to reinforce expectations of a slowdown in rate hikes. It extends its rally early Wednesday (Asian trading hours), with major cryptocurrencies making a strong comeback after Monday's dip despite the latest developments.
Bitcoin is trading at 17 thousand dollars
In light of the recent crypto-specific contagion, whether it's long-term rolling correlations or intraday price patterns, the correlations between Bitcoin and US stocks have plummeted significantly. Bitcoin's withdrawal from its ATH and draining of liquidity may have led to the stickiness of a weaker correlation as its price has become less sensitive to developments in macroeconomic data. But nonfarm payrolls and Powell's talk this week will provide clues as to whether the structural correlations are indeed softening.
Bitcoin is trading at $17,000 at the time of this writing, after a 4.4% jump in the last 24 hours. A successful break above this resistance zone will likely start a new round of momentum for the biggest cryptocurrency. Ethereum, the second largest cryptocurrency by market cap, is changing hands in the upper region of $1,200 after rising 7.6% over the same period. After a series of twists and turns over the past seven years, Brazil's lower house has finally passed a long-awaited crypto regulatory bill aimed at increasing oversight of the country's cryptocurrency industry. The bill will pass to outgoing President Jair Bolsonaro, whose mandate expires on December 31, 2022, for approval. The regulation serves to identify digital assets and service providers while subjecting the industry to the oversight of a government-appointed federal agency. It also recognizes Bitcoin as a digital representation of value that can be used as a means of payment and an investment asset in the South American country. The move is a response to the collapse of FTX and its affiliates earlier this month. Brazil is a country where the crypto market is growing beyond expectations, ranking high in Chainalysis's latest Global Crypto Adoption Index.
