• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
Breaking News: Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback
bitcoin and stocks

Why Bitcoin Investors Should Pay Attention To The Macro Environment

Best Owie by Best Owie
6 months ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

It can no longer be denied that the price of bitcoin is being heavily influenced by the macro environment. The stock market correlation had hit a new all-time high earlier in the year, and the crypto market is yet to decouple from it. Given this, bitcoin investors would do well to react accordingly and pay attention to the stock market for a possible forecast of where the bitcoin price may be headed, and here are some reasons why.

Institutional Investors Are Here

The call for institutional adoption had been loud throughout the last few years, and these big players had actually begun to move into the market. While this had come with a lot of positives for bitcoin, such as increased demand, it had also inadvertently tied bitcoin’s price to the stock market, which these big players are very visible.

Related Reading: Ethereum Options Surpass Bitcoin Ahead Of Upcoming Merge

The result of this had been a stronger correlation of bitcoin to the trends happening in the stock market. This means that whatever affected the institutional investors in the stock market due to the financial situations had also flowed over into bitcoin. Hence, if the stock market was going down, bitcoin is now more likely to follow it. And what’s more is that bitcoin actually does this with more volatility, causing a larger swing in price compared to the stocks.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.
No Deposit 40 FREE SPINS at Wild.io on SIGN UP. Wheel of fortune, daily bonuses, 10 BTC in prizes monthly! Start Playing Now!

macro environment

Correlation with stock market remains high | Source: Arcane Research

So if institutional investors are forced to sell their stocks, as was recently seen, it also flows into bitcoin. Hence, when there is forced selling in the stock market, there is also forced selling in crypto. So a decline in the stock market means a decline in bitcoin price.

Rising Interest Rates Affect Bitcoin

2022 has put the financial markets through a lot of hurt, and it has gotten worse with the level of inflation being recorded. The Fed has had to come up with new ways to combat this, which has led to a dramatic rise in interest rates.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Bitcoin price chart from TradingView.com

BTC trading at $23,516 | Source: BTCUSD on TradingView.com

These rising interest rates have been one of the major reasons behind bitcoin’s decline. Recall that the decline in the crypto market had actually started when some big players in the space had failed, but it was further pushed forward when the Fed announced the March interest rate hike that moved the fund’s rate from 0% to 2.25%-2.5%.

Related Reading: Another Red Daily Close Puts Bitcoin Below $23,000, Is Recovery Expected?

This is why paying attention to the macro environment is important to try to predict the future of bitcoin. Given its present correlation with the stock market and how the price had reacted to the hike in interest rates, staying abreast of the movements in the stock market as well as how the Fed is handling interest rates puts an investor in a position to make the best-informed decision.

Featured image from GOBankingRates, charts from Arcane Reseach and TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Tags: bitcoinBitcoin and stocksBitcoin stock correlationbtcbtcusdBTCUSDT xbtcusdmacro environmentxbtcusdt
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Best Owie

Best Owie

Related Posts

Bitcoin BTC

This Is How The Bitcoin Price Will Be Affected By Macro: Charles Edwards

17 hours ago
Bitcoin Bull

CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover

18 hours ago
Bitcoin BTC BTCUSDT

Banking Giant Goldman Sachs Ranks Bitcoin As World Best Performing Asset

1 day ago
Bitcoin

Bitcoin Short-Term Holder Profit-Taking Spikes, Will BTC Price Recover?

2 days ago
Bitcoin price

Here’s Why The Bitcoin Price Rally Stalled For Now

2 days ago
Bitcoin

Bitcoin Surges To $23,000 As Miners Sales Sees Multi-Year Low

3 days ago

Premium Partners

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
Metaspins

Metaspins

Review · Visit
Coinplay

Coinplay

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
Vave

Vave

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
Coinplay

Coinplay

Review · Visit

Solana (SOL) and LEO Token (LEO) Witness Steep Decline; Flasko (FLSK) Looking To Help Investors Recover Loss

January 26, 2023

BudBlockz (BLUNT) Emerges as a Haven as Bitcoin Cash (BCH) and Stellar (XLM) Struggle to Grow

January 26, 2023

The Top Picks for a Bear Market: Hedera (HBAR), Toncoin (TON), and Orbeon Protocol (ORBN)

January 26, 2023

STEPN (GMT) gains 21% as GameFi, and NFT Industries Suddenly Bounce Back, Decentraland (MANA) named one of the top creditors of bankrupted Genesis Global, Snowfall Protocol (SNW) Seems like the best buy in 2023

January 26, 2023

Polkadot (DOT) On the Rise Following New Releases This Week, Tron (TRX) Down 3% , Snowfall Protocol Is Giving Investors an Edge Over the Bear Market In 2023 With Over 500% Price Gain

January 26, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.