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Is Bitcoin Tied to the Stock Market?

While the cryptocurrency and stock markets have often seemed to live at opposite ends of the global marketplace, crypto is sliding along with major stock indices as of late. As the U.S. stock markets fell on Thursday, so too did Bitcoin. The largest cryptocurrency in the world has been hit by losses over the past 2 months, and it recently suffered yet another blow when Russia’s central bank said it should be banned and mining should be halted. In the midst of all this, analysts are trying to determine where Bitcoin will bottom out. Some believe the token needs to reach $46,000 to rebound. Still more believe that the token needs to settle somewhere between $42,000 and $47,000 before it can be bullish again. Others are noting that a less hawkish Federal Reserve could help Bitcoin’s cause, as the Federal Open Market Committee plans to meet on January 25th. Interestingly, analysts also believe that the stock markets need to show some “relative strength” so that they can decouple themselves from the cryptocurrency market. Plus, as reported previously, experts are waiting for a big liquidation candle to present itself. At press time, Bitcoin was trading just under $39,000, down over 8% on more than a 120% increase in volume and a slight dip in its market cap.

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