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Bitcoin rebounds above $27,000 after a week of decline - YAHOO FINANCE

MAY 15, 2023

Bitcoin (BTC-USD) has rebounded above the $27,000 (£21,635) mark, regaining lost ground after a week of plunging prices.

Bitcoin rose 2.3% to $27,466 on Monday.

Ether (ETH-USD), was up 1.5% to $1,831, according to Coingecko data.

Bitcoin has fallen more than 10% since 5 May, with the week of decline following profit-taking and low liquidity amidst industry and macroeconomic uncertainties.

Other cryptocurrencies posted positive movements on Monday, including Litecoin (LTC-USD) which was up over 7% to $87.

The CoinDesk Market Index, which measures the crypto market's performance, was up 0.8%.

Bitcoin decoupling from equity markets

There have been signs that bitcoin is beginning to decouple from its tendency to march in lockstep with equity markets, particularly the tech heavy Nasdaq (^IXIC).

The value of bitcoin has fallen by nearly 12% since peaking above $31,000 on 14 April, while the Nasdaq has risen over 2%.

There may be potential for further divergence as bitcoin lacks large outstanding short positions that could be squeezed, unlike tech stocks that continue to rally amidst recession expectations.

The Stablecoin Supply Ratio (SSR) — a metric indicating the supply-and-demand dynamics between stablecoins and bitcoin — has seen an 11% drop over 11 days, suggesting a potential increase in buying pressure for bitcoin.

While the SSR is low, the stablecoin supply has increased, suggesting more buying power to purchase BTC.


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