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Bitcoin prices slip, yet THESE macro signals hint at a BTC rebound
Bitcoin continues to hold a bullish stance, but cautionary signals are starting to surface as the cryptocurrency’s price slips. Despite recent market fluctuations, new macroeconomic insights suggest that both Bitcoin and the S&P 500 may still have room to rally further in the coming days.
According to recent data, the Fed Financial Stress Index (FFSI) is currently below zero, indicating a stable market environment with no signs of sell-side pressure. Historically, the metric has accurately predicted significant market movements, including during the 2020 lockdown.
Meanwhile, sentiment appears to be leaning more in favor of Bitcoin over the S&P 500, as evidenced by Bitcoin’s impressive year-to-date performance. With Bitcoin up a staggering 86.2% compared to the S&P’s 15.3%, there is evidence that investors are increasingly channeling their funds into Bitcoin rather than other assets.
It has been noted by renowned crypto analyst Joao Wedson that the current market environment exhibits characteristics of a “calm/observation” phase, warning that price action may react faster than these macro metrics in the future. If the FFSI breaks and holds above zero, it could serve as a warning sign for potential destabilization in the U.S. situation and subsequent impact on risk markets.
In light of this development, investors are advised to remain prepared to avoid being caught off guard by any unexpected market shifts.
On a more positive note, Asian markets appear to be showing early signs of recovery, with investors once again placing bids on Bitcoin. As seen in the Korean Premium Index’s 0.3 read from CryptoQuant, this trend is not yet over.
Source: ambcrypto.com
