- Bitcoin price performance turned flat in the last two weeks as BTC entered a tight correlation with equities.
- BTC valuation model reveals Bitcoin price is unlikely to drop below $35,000 apart from short-term volatility.
- BTC funds recorded an inflow of $311.5 million from institutional investors.
Bitcoin price performance has flattened over the past two weeks after the BTC run up to $38,400 on November 24. The largest asset by market capitalization observed an increase in capital inflow from institutional investors last week, according to a CoinShares report.
Also read: Bitcoin price gains might be sustainable with declining stablecoin dominance
Daily Digest Market Movers: Bitcoin weekly fund inflow on the rise, valuation model sets lower boundary for BTC price
- Bitcoin price rally slowed after yielding consistent gains since October 16. BTC price wiped out its weekly gains but sustained above the $37,000 level.
- Data from crypto intelligence tracker, Santiment, reveals a tight correlation between Bitcoin and equities after BTC price performance flattened. BTC correlation with S&P 500 is 0.43, up from a negative 0.76 on November 1.
BTC Pearson Correlation (30 days)
- The performance of equities rapidly caught up with Bitcoin in the last two weeks.nalysts at Santiment believe a BTC price rally without stocks following suit would be a strong sign that correlation between the sectors is breaking again. This is a key indicator to watch out for. Typically, a break in correlation is a sign of a rally in Bitcoin.
Cryptocurrency and equities correlation
- A Bitcoin valuation model based on mining difficulty (hashrate) increased to $35,000 on November 27. According to PlanB, the pseudonymous analyst behind the Bitcoin Stock-to-Flow model (S2F model), believes that apart from possible black swans or short- term volatility, Bitcoin price is not likely to go below $35,000 in the longer term.
Bitcoin valuation models
- Institutional investors have poured $311.5 million in BTC funds in the past week, according to a latest CoinShares report. The year to date inflows to BTC funds has hit $1,550 million.
Crypto fund flows by asset
Technical Analysis: Bitcoin price rally hits pause
According to crypto analyst Adrian Zduńczyk, Bitcoin’s breakout target is the range between $39,000 and $40,000. The analyst has identified the range between $25,000 and $32,000, as the trading range for Bitcoin.
BTC/USD 1-day price chart
At the time of writing, Bitcoin price is above the $37,000 mark on Binance, the asset’s price remained largely unchanged in the past week.
Open Interest, funding rate FAQs
How does Open Interest affect cryptocurrency prices?
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
How does Funding rate affect cryptocurrency prices?
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Cardano Price Forecast: ADA bulls target double-digit gains as bullish bets increase among traders
Cardano (ADA) price hovers around $0.74 at the time of writing on Thursday after a recovery of over 4% so far this week. On-chain data hints at a bullish picture as ADA’s stablecoin market cap rises while its bullish bets increase among traders.
GameStop's plan to issue $1.3 billion convertible notes to buy Bitcoin could boost crypto market and meme coins
Video game retailer GameStop announced on Wednesday that it plans to issue senior convertible note offerings worth $1.3 billion. The company aims to use part of the proceeds from the offerings to buy Bitcoin.
Stablecoin mania kicks off as Wyoming and Fidelity join the race
According to Governor Mark Gordon, the state of Wyoming has joined the race for a stablecoin, following plans to launch WYST, a US Dollar-backed token in July.
Toncoin traders target $10B valuation as Elon Musk integrates Grok AI into Telegram
Toncoin price rose 3% on Wednesday despite crypto market inflows subsiding after a two-day rally.
Bitcoin: BTC stabilizes around $84,000 despite US SEC regularity clarity and Fed rate stability
Bitcoin price stabilizes around $84,000 at the time of writing on Friday after recovering nearly 2% so far this week. The recent announcement by the US SEC that Proof-of-Work mining rewards are not securities could boost BTC investors' confidence.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.