The crypto-US market correlation continued on Friday, providing support for Bitcoin (BTC)
Bitcoin (BTC) has struggled early on Saturday after finding support from US equities markets on Friday. There’s a lot for the markets to think about.
On Friday, Bitcoin (BTC) and the larger crypto market saw a positive session. Market worries about the Federal Reserve’s monetary policy and aggressive FOMC member rhetoric from Thursday subsided by the end of the week.
On Wednesday, US inflation appeared to have altered the path of interest rates. On Thursday, a number of FOMC members discussed the necessity for up to four rate rises to combat inflation. In December, the annual rate of inflation in the United States reached its highest level since 1982.
In response to hawkish rhetoric, Bitcoin fell into the red. The crypto market’s movements mirrored those of the US equities markets, which also experienced big losses on the day. Bitcoin lost 3.02 percent on Thursday, while the NASDAQ dropped 2.51 percent.
The IMF raised worries this week about the interconnectivity of the US equities and crypto markets, prompting more interest in movement across both.
Friday’s market movement, on the other hand, was favorable. The NASDAQ gained 0.59 percent, while Bitcoin gained 1.19 percent.
