Cryptocurrency market volatility has been high in recent days, indicating that the bullish momentum may be coming to an end. The leading digital asset, Bitcoin, has been struggling to surpass $52,000 and is expected to experience a correction in the market.
According to recent analytics from IntoTheBlock, there is a strong correlation between Bitcoin and traditional stock markets, with this connection reaching its peak in the past two months. This trend is seen as a signal that investors are anticipating a rate cut by the Federal Reserve, reflecting a bullish sentiment in the market.
The correlation coefficients between Bitcoin and the S&P 500 and Nasdaq 100 are 0.72 and 0.63, respectively, suggesting that Bitcoin is increasingly moving in tandem with major stock indices. This challenges its perceived role as a non-correlated asset and hedge against market volatility. Investors may need to reassess their strategies in light of this new data-driven insight.
Despite the market uncertainty, Ethereum (ETH) has sustained its recovery trend. The Worldcoin (WLD) and Stacks (STX) have also emerged as some of the top gainers among the leading cryptocurrencies.
The Ethereum price has been on a high momentum rally, reaching over $3,000. This surge is attributed to a rising channel pattern, with the coin expected to hit $3,175 if the pattern holds true.
However, a crypto whale has executed a significant transaction, withdrawing 11,587 ETH from the exchange Binance, worth approximately $33.5 million. This is part of a larger pattern of accumulation by the whale, who has purchased a total of 64,346 ETH, valued at $178.9 million, from both centralized and decentralized exchanges since February 8th. This aggressive accumulation coincides with a noticeable uptick in the ETH price, indicating a belief by smart money in further growth potential.
The Stacks coin (STX) has also experienced a significant bullish run in the past two weeks, soaring nearly 98%. This surge is largely attributed to a substantial increase in the network’s Total Value Locked (TVL), which has grown by 132.64% in the same period. This signals a robust enhancement in the platform’s adoption and user trust.
From a technical standpoint, the daily chart analysis indicates that this rally is being propelled by a rounding bottom pattern, a bullish indicator that often precedes sustained upward movements. Riding this momentum, the Stacks price has climbed 14%, reaching the neckline resistance of $3.236, suggesting a potential for continued upward movement.
The native cryptocurrency of the Worldcoin ecosystem, WLD, has emerged as the highest weekly gainer among the top 100 cryptocurrencies by market cap. It has seen a 190% surge, reaching an all-time high of $7.75. This high momentum rally is attributed to the project’s dedicated wallet application, World App, surpassing 1 million daily users. This achievement highlights the growing adoption and user engagement within the Worldcoin community. However, newcomers may want to wait for a pullback opportunity at $6 before entering the market.
In conclusion, the cryptocurrency market is facing volatility, but Ethereum and Stacks are showing strong resilience, while Worldcoin is experiencing a high momentum rally. Investors may need to reassess their strategies in light of the correlation between Bitcoin and traditional stock markets.
