There is an active cryptocurrency recovery happening amidst the downturn in stock markets. Bitcoin and Ethereum are showing positive movements despite negative trends in equity.
Details of Cryptocurrency Recovery
Following a sharp pullback from last week's highs, major cryptocurrencies have started to rebound. Bitcoin stabilized above $112k, Ethereum showed growth, and notable coins like Dogecoin and XRP registered positive changes. This resurgence stands out against the backdrop of equity weakness, particularly in Nasdaq and S&P 500.
Reasons for Cryptocurrency Recovery
Recent data shows that digital asset funds attracted approximately $3.75B last week, making it one of the largest weekly inflows on record. This norm remains a powerful driving force. A weaker dollar has also made USD-denominated assets cheaper for global buyers. Additionally, corporate interests continue to surface, underscoring the demand for cryptocurrencies in times of instability.
Market Prospects and Risks
If BTC holds above the $112k-$113k range leading into Powell's speech and equities stabilize, a retest of around ~$120k is possible. However, risks such as the Jackson Hole speech and the behavior of the US dollar could impact risk assets.
Cryptocurrencies continue to show strong performance independent of the downturn in the stock market. It is important to monitor further changes that could impact this dynamic segment.
