Crypto bigwigs have spoken about their confidence in Bitcoin recovery. However, at the same time, they have also cautioned investors about a prolonged winter.
During the last 24 hours, Bitcoin prices have experienced another tumble. The retracement was a result of the increasing pressure from the stock market performance.
Under the current environment, when FTX has opened a black hole of controversies and complaints in the cryptocurrency markets. The ongoing bear market sentiment is expected to keep strengthening.
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Financial experts are eager to find out the next retracement threshold for Bitcoin by drawing a comparison with the S&P 500 index finding out that crypto is tracing a downward trend.
Correlation Between Stock Market and Bitcoin
As per the analytical report issued by Josh Roger, Bitcoin is currently under pressure from the stock market.
He claimed that when the equity market is in free fall, it seems that Bitcoin is going to follow it. It is worth noting that he issued his projections recently.
In another tweet, Roger claimed that the bearish sentiment for Bitcoin is the result of a pullback from the stock market. The reaction of the investors is to take caution after the FTX incident, which has created more pressure on the market.
The crypto market is currently overflowing with altcoins. He posed the question of whether Bitcoin selling pressure increases is yet to be found.
DeFi’s Trading Volume has Increased
One thing that investors need to focus on is that FTX was barely part of the DeFi ecosystem, as it was marketed as a regulated exchange.
Under the current pretext, the question arises of how much the current regulatory laws and the vision of the government are suitable for protecting the interest of the crypto sector and investors.
Meanwhile, DeFi has continued to show signs of increasing trading volume. Data shows that the trading volume has risen to the highest level in 8 years.
Moustache, a pseudonymous crypto analyst, has noted that Bitcoin needs to adhere to the $15,800 price; otherwise, it can drop as low as $13K.
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