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<\/a><\/p>\nThere are two important sources of potential sellers that are left, Check caveats. One is Bitcoin\u00a0miners, who have seen the value of their hardware plunge along with the price of the token — stress that could worsen if Celsius\u2019s mining subsidiary starts unloading some of its 80,850 rigs to raise capital. The other is traders who will indiscriminately sell risk assets of all kinds if the stock market starts to collapse again.<\/p>\n
On that front, this week did bring some potential good news for the laser-eye set. For one thing, the S&P 500 remains about 5% above its bear-market low from last month. And the 40-day correlation between Bitcoin and the Nasdaq 100 Index has receded to the\u00a0weakest level\u00a0since January, suggesting that the two are less vulnerable to lockstep moves in either direction.<\/p>\n
Fresh catalysts are needed to push prices decisively one way or another, according to James Malcolm, head of foreign exchange and crypto research at UBS. One good sign that the market could be normalizing, though, is the strong performance of second-tier tokens such as of Matic and Aave.<\/p>\n
\u201cWhat we\u2019re seeing in crypto at the moment is a situation where individual stories matter a little bit more,\u201d he said. \u201cSome of that\u2019s related to new products, some of it is related to tech upgrades and some to business tie-ups. So we seem to be slipping into a more-conventional market.\u201d<\/p>\n
All that said, this famously mercurial asset class has proven time and again that picking a bottom — or a top — is a perilous endeavor. And any green shoots that appear to be emerging in this crypto winter will likely need nourishing from macroeconomic factors, which are currently being driven by sky-high inflation and the Federal Reserve\u2019s determination to snuff it out with higher interest rates.<\/p>\n
\u201cI wouldn\u2019t want to extrapolate too much on it,\u201d Marc Chandler, chief market strategist at Bannockburn Global Forex, said of the recent stabilization in crypto prices. \u201cTo me, the quieter tone you\u2019ve seen in crypto this week may be a reflection of a lack of participation as people try to figure out what to do in this environment, in which the Fed is clearly tightening.\u201d<\/p>\n