Despite Macroeconomic Conditions, Bitcoin Still Stronger Than Stock Markets!

• New data from IntoTheBlock shows that Bitcoin has demonstrated relative strength against the stock market amid falling macroeconomic conditions.
• In a recent article, analytical firm’s research director Lucas Outumuro highlights that the price movement of the crypto king was ‘exceptional’ during a period when the stock market experienced a decline last week.
• The analyst also emphasizes that hodlers, or those who have held their BTC for more than a year, currently represent about 69% of the total supply.

While the Federal Reserve’s decision to keep interest rates high has created pressure in the markets, Bitcoin has proven to be more resilient compared to the U.S. Dollar Index (DXY) and stock markets!

Macro Economy Challenges, But Bitcoin Remains Strong

New data from IntoTheBlock reveals that Bitcoin (BTC) has shown relative strength against the stock market amid challenging macroeconomic conditions.

Lucas Outumuro, the research director of the analytical firm, notes in a recent article that the crypto king’s price movement was ‘exceptional’ during a period when the stock market experienced a decline:

“The Federal Reserve did not raise interest rates this week, as expected. However, through dot plots, they signaled one more rate hike this year and only two rate cuts by the end of 2024, demonstrating their commitment to keeping rates high for longer.

This brought 10-year yields to their highest levels since 2007 and created pressure on the markets. The Nasdaq and S&P 500 dropped by 3.3% and 2.7%, respectively, until this week. However, Bitcoin showed relative strength, maintaining the same price of $26,600 as last week and performing well in the last 30 days.”

Outumuro explains why Bitcoin’s price has remained stable despite challenging market conditions and mentions three factors for this:

“Some key points that can explain Bitcoin’s stable price:

Bitcoin’s correlation with the dollar has reached zero, leaving it in a strong position despite the rally of the U.S. Dollar Index (DXY).

The passage of the Bitcoin ETF (exchange-traded fund) is still seen as a positive catalyst, as owners are reluctant to sell beforehand.

The Mt. Gox payments, which planned to distribute 850,000 BTC worth $23 billion to users affected by the hack attack, have alleviated the expected selling pressure as it was supposed to begin next month but has been postponed for a year.”

Analyst Highlights the HODL Trend

The analyst also points out that hodlers, or those who have held their BTC for more than a year, currently hold nearly record levels of the total supply, with approximately 13.44 million BTC, representing about 69% of the total supply.

“In general, this trend seems to indicate that a bull cycle is approaching for Bitcoin. However, while it remains uncertain how long Bitcoin will continue to show relative performance in a worsening macro environment, on-chain data shows that long-term investors are still holding on.”