It’s become a rarer occurrence these days, but bitcoin (BTC) went its own way, dropping on Tuesday as stocks rose.Read MoreFeedzy
Bitcoin (BTC) slid, continuing its thus far uninspiring start to May, as crypto traders positioned ahead of a U.S. Federal Reserve decision due Wednesday.
The largest cryptocurrency by market capitalization was down 1.2% in the past 24 hours to around $37,719, as of press time.
A major market talking point in recent weeks has been bitcoin’s elevated correlation with U.S. stocks, especially the tech-focused Nasdaq 100 Index. But the S&P 500 and Nasdaq were both in positive territory on Tuesday, as crypto markets appeared to suffer from negative sentiment.
“Bitcoin is steadying ahead of the [Federal Open Market Committee] as crypto traders await to see if Wall Street has come close to pricing in peak Fed hawkishness,” said Oanda senior market analyst Edward Moya.
Read more: Fed Meeting Decision Looks Baked, But Outlook is Far From Certain
“Bitcoin will continue to trade as a risky asset until further progress is made with the Lightning network,” said Moya. “Bitcoin needs a fresh catalyst, and progress in the peer-to-peer payment network might be what is needed to revitalize crypto bulls.”
“Since late March, the bears have been intensifying from $39K, forming a sequence of lower highs,” said Alex Kuptsikevich, senior market analyst FxPro. “At the same time, the basis in the form of support at $38K generally remains untouched.”
Kuptsikevich said the crypto market seems to have “laid at the bottom.” There is a high supply of coins for sale and reluctance to “take active actions in anticipation of the Fed’s decision.”
“According to Coin ATM Radar, the global bitcoin ATM installation rate declined for the fourth consecutive month in April,” Kuptsikevich said.
Marcus Sotiriou, analyst at the U.K.-based digital asset broker GlobalBlock, said that “despite the fears surrounding bitcoin volatility, data from @ecoinometrics shows how bitcoin’s volatility is actually less than many tech stocks, including Apple [AAPL] and Meta [FB].”
“It is clear that every halving leads to less volatility as the asset matures and is adopted more,” Sotiriou said.
Ether (ETH) was down 0.07% in the past 24 hours, trading at $2,794.
The S&P 500 was up 0.6% and the Nasdaq was up 0.1%.
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