As the week goes on, Bitcoin is still moving sideways. It was dropped from $40,000 and it has not been able to recover to its previous highs. BTC is showing some resilience, even as the traditional markets seem to be trending lower.
Where Ethereum and Bitcoin Headed After Musk’s Tweet| Where Ethereum and Bitcoin Headed After Musk’s Tweet
Bitcoin currently trades at $38,830, with a 2.2% gain over the last week.
Traditional markets are now facing significant challenges due to uncertainty on two fronts: Russia-Ukraine conflict, and potential rise in interest rates from the U.S. Federal Reserve.
As a result, China’s stock market has experienced major losses over the past week. Yesterday’s 3% decline in Mainland China stocks was noted by a pseudonym analyst. This situation is beginning to resemble the 2008 economic crisis.
Hang Seng dropped to 5% within 5 minutes of the start. China down almost 3 percent It was yesterday’s worst session in china since 2008. When do you consider it to be a crisis, or a crisis in the first place?
— TheLastBearStanding (@TheLastBearSta1) March 15, 2022
The U.S. stock market, as represented by the S&P 500, has also seen losses and has been trending to the downside since the start of 2022.
Amazon suffered a loss of 15%, Apple lost 18%, Microsoft lost 18%, and Tesla lost 27% during this time. They are not the only ones, but they make up some of traditional financial strength.
Bitcoin’s relative strength has been evident in the interim. Although Bitcoin has been trending sideways, its value has remained stable despite the negative stock market price.
Bitcoin and equities moved in tandem. They were considered correlated assets. This is one of the narratives of this current cycle but seems to be losing strength as BTC’s price continues to defend its ground.
Bitcoin continues to move upwards, even while traditional safe havens fall in shorter time frames. Gold has lost almost 2% of its value during today’s trading session, quickly after rallying north of $2,040.
Are Shorts Making More Money?
Wu Blockchain has provided data that shows that a lot of high-value gamers borrow money from Bitfinex, a crypto trading platform. They used the funds to open short unprotected positions.
Since March 10, more than 5,000 BTC have been used to open shorts and take loans. However, positions are trending down in the last twelve hours.
Datamish data shows that the Bitfinex BTC loan is being returned and short-sellers have borrowed BTC at 2,481. This represents a 49.5% drop in 24 hours. pic.twitter.com/fB4hSYO7nn
— Wu Blockchain (@WuBlockchain) March 15, 2022
Maybe these unprotected shorts were long in a different crypto exchange, maybe they closed their shorts as they noticed BTC’s price current price action.
Bitcoin’s current situation has led to an increase of accounts with more than $1,000 balances. This is due to fear from the conflict in Ukraine as well as inflationary expansion.
BTC is being used by more people to possibly hedge against European conflict, and also to move wealth among borders to ensure that everyday items are not lost if banks fail.
You may also like these related readings| Bitcoin is Trying a Fresh Increase. Why Should the Upsides Be Capped
This is a wake-up call for everyone who pays attention. BTC is more important than ever.