BTC in the past week drops while stocks rise big time last Friday. But Why?
In the chart, BTC is still unable to get back inside the wedge & may be going lower.
It may be that investors are selling BTC to rotate into stocks & also bonds when they see the FED not overly hawkish & the $Dollar & 10 yr yield stabilizing & may be having a shortterm top.
It would be better if we can use BTC as a hedge against rising rates, rising inflation & falling stocks. That we need to see.
If the correlation of BTC with risk assets is still valid, this may be a bulltrap. Retails FOMO in last Friday may see a rugpull next week as they realize that the underlying conditions in the market remains unchanged.
Not trading advice
In the chart, BTC is still unable to get back inside the wedge & may be going lower.
It may be that investors are selling BTC to rotate into stocks & also bonds when they see the FED not overly hawkish & the $Dollar & 10 yr yield stabilizing & may be having a shortterm top.
It would be better if we can use BTC as a hedge against rising rates, rising inflation & falling stocks. That we need to see.
If the correlation of BTC with risk assets is still valid, this may be a bulltrap. Retails FOMO in last Friday may see a rugpull next week as they realize that the underlying conditions in the market remains unchanged.
Not trading advice