Bitcoin (BTC-USD) is currently lagging behind US stocks, which are showing signs of recovery after a long period of risk-taking, CoinDesk reported.
Investors appear to be returning to riskier assets — but not bitcoin (BTC-USD) — amid the reports that inflation it may have reached its peak and comments from Federal Reserve Chair Jerome Powell suggest that inflation may slow in the near future his meeting next week.
The top cryptocurrency, which usually tracks US markets, is doing this because the fallout from the FTX crisis has severely damaged sentiment in the crypto space.
Bitcoin (BTC-USD) is currently flat at $17.1K, firmly below its 200-day moving average. On the other hand, the major market indices – S&P 500 (SP500), Dow Jones (DJI) and Nasdaq Composite (COMP.IND) – are all trading above the 200-day moving average.
“Without the FTX implosion, bitcoin would be trading at $29K right now – instead of $17.2K (or +69%). But with a lot of support, these levels can be achieved in 2023,” said Markus Thielen, CEO. research & strategy on the crypto services industry Matrixport.
Thielen expects that “a weak greenback will support crypto prices and lower prices, the macro could be a risk for risky assets and crypto”.
Bitcoin fell to a two-year low of $15.5K last month as the FTX spread continued. Standard Chartered believes that bitcoin (BTC-USD) will continue and may increase by 70% to $5K in 2023.
But Bank of America believes that the increased regulatory burden will be management