- US stock indexes fight off bears and recover from recent fall, driving Bitcoin and Ethereum gains.
- Analysts believe Bitcoin has bottomed out and the asset could start breaking to the upside consequently, as trend reversal is in place.
- Ethereum has climbed above $2,100, a key level for the altcoin and analysts predict a continuation of the upmove.
Bitcoin and Ethereum have a high correlation with US stocks. The recovery of the S&P 500 on May 13, therefore, had a positive impact on investors’ sentiment and promoted price gains in Bitcoin and Ethereum.
Bitcoin, Ethereum bounce in response to recovery in stocks
The US stock markets started its recovery on Friday, with Bitcoin price responding to the rise in S&P 500.
Bitcoin and Ethereum prices are up 4% and 6% on the day The recovery in cryptocurrencies has been fueled by the positive sentiment among investors amid the rise in stock indexes and a trend reversal in the assets.
Michäel van de Poppe, a crypto analyst and trader, tweeted in response to the BTC reaction to the advance in US stock markets,
This is going to be a very decent weekly candle on the U.S. stock markets if we close like this. #Bitcoin also reaction in a positive manner.
— Michaël van de Poppe (@CryptoMichNL) May 13, 2022
@crypto_birb, a leading analyst, believes that the chances of Bitcoin hitting a bottom are high, since the BTC price chart reveals patterns that started breaking to the upside consequently. The analyst believes a trend reversal in Bitcoin is likely, within the next few months.
Also, worth watching #Bitcoin chart pattern play out pic.twitter.com/DPRf3jDje2
— CRYPTO₿IRB (@crypto_birb) May 13, 2022
Some analysts believe the short-term bounce in stocks is a result of near-term capitulation. They warn that a downward trend may still be firmly in place.
Fawad Razaqzada, a market analyst at City Index, said,
...as we have seen time and time again, stocks have struggled to sustain any recovery attempts as traders have been quick to take profit on rebounds amid a bearish macro back drop — rising interest rates, low growth and high inflation.
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.