On July 8th, the US stock market reached new heights during the Wall Street opening, maintaining steady gains while Bitcoin prices struggled to maintain above $56,000. The cryptocurrency faced increased volatility over the weekend, with fluctuating spot prices post the weekly close on July 7th. The market experienced turbulence but recovered during the Asian trading session.

Current Status of the Cryptocurrency Market

The crypto market witnessed a subsequent decline as the S&P 500 and Nasdaq Index hit record highs, distancing themselves from risk assets. QCP Capital, a trade company, highlighted this divergence in its recent bulletin to Telegram subscribers, stating that stocks and gold were on the rise, unlike crypto prices.

Hence, the focus shifted to upcoming macroeconomic reports and statements from US Federal Reserve Chairman Jerome Powell. Keith Alan, the co-founder of Material Indicators, emphasized the potential impact of Powell's comments or legislative changes related to cryptocurrencies on speculators.

Predictions for Bitcoin

Alan, like many market participants, remained cautious regarding Bitcoin's future, warning of the possibility of new macro lows. Pointing to key support levels on a Material Indicators chart, he suggested that the market might test the $48,000 threshold, emphasizing the need for a swift recovery above $50,000 to avoid further decline towards the 2-year trend line.

He noted that Bitcoin had been following a 40% decline pattern since its block subsidy halving event following its all-time high of $73,800 in March. Rekt Capital, a renowned trader and analyst, highlighted the magnitude of the current downturn, labeling it as the deepest retracement and the second-longest pullback in the cycle.

This assessment outlines the ongoing dynamics of Bitcoin amidst the soaring US stock market, reflecting the intricate relationship between traditional financial markets and cryptocurrencies.