Is the Winter Over?

In this buzz: Bitcoin above $20,000; rate hike and more Crypto…

Above $20,000 in Bitcoin a rally?

It seems like a stretch to call a move above $20,000 in Bitcoin a rally, but it made the headlines. Maybe it’s just a slow news day but BTC reached its highest levels in a week and (seemingly) more importantly it did so as SPY closed at its lows for 2022.

So are hailing the divergence between stocks and crypto as a harbinger for things to come:

Perhaps the correlations between these asset classes truly are decoupling.
Maybe the global recession fears that are plaguing equities, don’t spell doom for BTC? It’s possible.
Fed rate hikes, inflation and an economic slowdown are factors that can all weigh on equity returns.

Maybe the divergence isn’t a fluke and crypto can stand on its own:

Who knows? It could be a coincidence though and it’s probably not wise to hang our hopes on one day, week of month of divergence in risky assets. But it is certainly worth watching.

Crypto traders are positioning themselves for a top in USD?:

One other factor is being attributed to the BTC rally: picking a top in the dollar. Some analysts claim that crypto traders are positioning themselves for a top in USD which would be a boon to BTC.

We’ll see… it’s still kind of hard to get excited at BTC = $20,000. Idk.