Top cryptocurrency analyst and strategist DonAlt has posited that Bitcoin (BTC) may require support from the stock market to reach its previous all-time highs. Renowned for accurately predicting the bottom of Bitcoin in 2022, DonAlt now asserts that Bitcoin is poised to exit its current consolidation phase.
Bitcoin’s Correlation with the S&P 500?
Despite favorable developments in the cryptocurrency sector, Bitcoin has exhibited relative weakness compared to the stock market. DonAlt’s latest projection emphasizes that Bitcoin’s price trajectory might hinge on the strength of the US stock index, the S&P 500. According to the analyst, if the S&P 500 maintains its upward momentum and Bitcoin stays above $65,500, it could potentially reach new highs.
DonAlt has expressed concern over Bitcoin’s recent relative weakness, stressing the critical role of the S&P 500’s performance. He emphasizes that Bitcoin’s ability to attain new heights is significantly dependent on the S&P 500 retaining its strength.
Why Monitor the S&P 500?
Bitcoin recently closed above the $65,500 level specified by DonAlt, and is currently trading at $66,165. The analyst’s insights suggest that Bitcoin’s near-term movements might be closely linked to broader market trends in the US stock markets, notably the S&P 500.
At present, the S&P 500 is hovering near its all-time high of 5,441 reached in mid-June 2024, with a current valuation of 5,431.
Actionable Insights
Investors should:
- Monitor the S&P 500 for signs of continued strength.
- Track Bitcoin’s price relative to the $65,500 and $66,000 levels.
- Stay updated on broader market trends that may influence both the cryptocurrency and stock markets.
In conclusion, DonAlt’s analysis underscores the interconnection between different financial markets and the potential influence of stock market movements on Bitcoin’s price. For investors and traders, close observation of both Bitcoin’s price action and the S&P 500’s performance will be key in forecasting the future trajectory of the leading cryptocurrency.