Wall Street started the week in a correction mode with all three top U.S. indices correcting 1% on Monday, September 26. However, Bitcoin and the broader crypto market have made a surprising move northwards with the BTC price shooting past $20,000 levels.
With the recent BTC move, more than $14 million in short liquidations have taken place. As of press time, Bitcoin is trading 6% up at a price of $20,016 and a market cap of $385 billion. Citing data from Glassnode, @OnChainCollege reported:
The #Bitcoin Mayer Multiple remains at a historically low level, signalling that BTC is undervalued compared to its 200 day moving average. I highlighted the noteworthy times that the Mayer Multiple has dropped below the green line over the last 4 years.
Over the last week, the BTC price was struggling around $19,000 levels with analysts expecting that we would once again reach closer to the 2022-low of $17,500. The recent bounceback could bring a sigh of relief to the Bitcoin community.
The Bitcoin price pump comes amid the recovery in the broader crypto space. Along with Bitcoin, altcoins like Ether (ETH), Solana (SOL), and Avalanche (AVAX) have also rallied by more than 6%. However, Bitcoin and the crypto market have been more resilient to volatility, unlike traditional assets. While world stocks and commodities have tanked over 10%, the MVIS CryptoCompare Digital Assets 100 Index has shed only 1% over the last month.
Is Bitcoin Decoupling?
Bitcoin has shown a greater correlation to the U.S. equity market this year, especially the S&P 500. The recent move shows that Bitcoin is trying to break from this correlation but it is still too early to say anything. One concerning factor also has been the decline in the Bitcoin whale holdings throughout this year.
Analysts continue to remain tepid amid uncertainties in the global macros. In a note on Monday, Katie Stockton, founder of Fairlead Strategies LLC, a research firm focused on technical analysis, wrote:
“Our short-term gauges support a rebound this week. However, we only feel comfortable moving to a short-term neutral stance because we expect the bounce to fail quickly.”