Vertigo3d
Bitcoin (BTC-USD) turned lower in late Thursday morning trading as the broader stock market gave back a portion of the prior session's bounce against a backdrop of rising Treasury yields.
After failing to break out of $20K earlier this week, bitcoin (BTC-USD), -1.1%, slumped to as low as $18.9K, now changing hands at $19.26K as of 11:37 a.m. ET. Ethereum (ETH-USD), meanwhile, appears to be holding up better than bitcoin, down a mere 0.3% to $1.32K.
The bearish intraday price action comes as all three major U.S. stock indices come under selling pressure alongside falling bond prices, with the Dow Jones (DJI) off 1.6%, S&P 500 (SP500) sliding 2.1% and tech-heavy Nasdaq (COMP.IND) retreating 2.9%.
Since bitcoin's (BTC-USD) price has shared a strong relationship with stocks over the past year, it may be worth mentioning that "there are just 4.37% of stocks [in the S&P] trading above their 50-day moving average," said GlobalBlock analyst Marcus Sotiriou, noting "that percentage level has resulted in extreme rebounds to the upside" historically speaking.
All in all, if there's a possibility that stocks are starting to bottom out, that implies bitcoin (BTC-USD) could be ready to retrace its losses since the November 2021 peak of $68.9K. But that's a big if. Seeking Alpha contributor Lance Roberts, meanwhile, believes markets are set up for a "big short squeeze."
Crypto-related stocks, too, traded in a sea of red, including Coinbase (COIN) -8.9%, Silvergate (SI) -7.4%, Riot Blockchain (RIOT) -5.8%, Marathon Digital (MARA) -4.5% and Core Scientific (CORZ) -10%.
SA contributor The Digital Trend believes that bitcoin "is set to thrive" no matter what the Federal Reserve does.