Bitcoin Demonstrates Strong Relative Strength Against Stock Market Amidst Worsening Macro Environment: Analysis Firm

Bitcoin Holds Steady Amid Market Turmoil

New data from analytics firm IntoTheBlock reveals that Bitcoin (BTC) is displaying relative strength compared to the stock market, despite worsening macroeconomic conditions. The crypto king’s price action has been “remarkable” while the stock market has experienced a decline.

Factors Behind Bitcoin’s Stable Price

Lucas Outumuro, head of research at IntoTheBlock, explains why Bitcoin’s price has remained steady despite challenging macro conditions. He points out three key factors contributing to its stability:

Bitcoin’s correlation to the US dollar has reached zero, positioning it strongly even as the dollar index rallies.
The potential approval of a Bitcoin exchange-traded fund (ETF) serves as a positive catalyst, making holders hesitant to sell in anticipation.
The delay in Mt Gox’s repayment plan eases selling pressure that was expected if redistributions had begun next month.

Hodlers Accumulate Bitcoin

Additionally, Outumuro highlights that long-term investors, known as Hodlers, now own a near record-high of 13.44 million BTC, representing about 69% of the available supply. This accumulation trend signals a potential bullish cycle for Bitcoin.

Bitcoin’s Performance and Future Outlook

While it remains uncertain how long Bitcoin’s outperformance will continue in a deteriorating macro environment, on-chain data indicates that long-term investors are still accumulating the cryptocurrency. At the time of writing, Bitcoin is trading at $26,109.

Hot Take: Bitcoin Shows Resilience Amid Market Volatility

Despite challenging macroeconomic conditions and a decline in the stock market, Bitcoin has demonstrated relative strength and stability. Its price has remained steady due to factors such as its decoupling from the US dollar, the potential approval of a Bitcoin ETF, and the delay in Mt Gox’s repayment plan. Long-term investors continue to accumulate Bitcoin, signaling a potentially bullish cycle ahead. While uncertainties persist, Bitcoin’s resilience in the face of market volatility is noteworthy.