Bitcoin Stays Strong Amid Market Turmoil
Bitcoin’s price held firm above $80,000, despite growing trade risks. As of Friday morning, BTC was valued at $83,230, a 9% increase from its March low.
While bitcoin showed resilience, the U.S. stock market faced a downturn.The Dow Jones index dropped over 1,080 points on Friday, following a similar decline the previous day. Its now 13% below its 2024 high.
Other indices fared worse. The Nasdaq 100 entered a bear market, falling over 20% from its yearly peak. The S&P 500 and Russell 2000 also saw meaningful declines.
Two factors could support Bitcoin and stocks. First, bond yields are falling. The 10-year U.S. Treasury yield dropped below 4%, a level not seen in months. Lower yields suggest recession fears, which might prompt the Federal Reserve to intervene.
Historically, the Fed uses interest rate cuts and quantitative easing to boost markets. These measures have been bullish for assets like Bitcoin and stocks during crises.
Market fear is also rising. The CNN Fear and Greed Index fell to 4, indicating extreme fear. The Crypto fear and Greed index is at 25, in the fear zone. Historically, markets rally when fear peaks.
Technically, Bitcoin remains in an uptrend. It’s trading above the lower bound of an ascending channel and the 50-week moving average. This suggests bulls are still in control.
For more insights, check Adam Kobeissi’s analysis.
