Bitcoin is showing signs of recovery after falling as low as $ 43,000 over the weekend. Within a week, there was a 25% drop in the world’s largest cryptocurrency price, making it its worst performance since the market crash in March 2020.
Santiment analytical data provider shared the information that currently the correlation between the Bitcoin exchange rate and the traditional stock market is higher than the historical norm. This development coincided with the Bitcoin correction, where the leading cryptocurrency recorded a record high of $ 58,000 and is now struggling to rise from the $ 47,300 zone.
While the current Bitcoin-stock correlation remained high, Santiment analysts shared that Bitcoin’s rise coincided with a negative correlation in December 2020.
In December 2020, the world’s largest cryptocurrency in terms of market capitalization was moving towards the $ 19,100 level, it started to rise and then surpassed the all-time high at the end of 2017 when Bitcoin reached $ 20,000.
On January 4, Bitcoin crossed the $ 34,227 level. It reached the price level of $ 40,883 on January 10 and continued to hit an all-time high after another.
The most recent ATH for Bitcoin was above the $ 58,000 level, followed by a correction as BTC is currently trading at a lower price of about $ 10,000.
In addition, popular crypto analyst Michael van de Poppe (also known as “Crypto Michael” on Twitter) said that despite the current Bitcoin correction, users and financial institutions continue to buy Bitcoin from the bottom and pull it from exchanges to cold wallets. Bitcoin outflow from trading centers continues to remain high, according to the Glassnode chart published by the analyst.