Back on track: US macro events unlikely to fully derail Bitcoin price gains


High-tech stock market indices including the Nasdaq Composite and the S&P 500 have begun to rebound. Amazon reported strong sales in the wake of the pandemic, which resulted in a threefold increase in profits and reported revenue growth of 37%. Facebook also surpassed Wall Street's expectations, reaching $ 21.5 billion in revenue in the third quarter.

Although the correlation between bitcoin and US stocks has declined in recent weeks, the likelihood that rising risk sentiment in the market could support BTC remains high. As Kevin Swenson, an analyst at Kraken's Cryptowatch, explained, the market direction between bitcoin and the S&P 500 is "the same 80% of the time."

Thus, Swenson hinted that the correlation is likely to return: “The only week in 2020 with no correlation was at the very bottom of the global pandemic collapse, when #Bitcoin surged to the S & P500 rally. Remember that "correlation" should not be calculated as a% profit or loss. We are strictly talking about the market direction. An upward or downward trend ”.

The US stock market entered reporting season after several weeks of stagnation. Historically, the earnings season has been positive for equities, acting as a short-term catalyst. This could put Bitcoin (BTC) in a unique position because it rallied throughout October despite the fall in US stocks. If there is some upside momentum for risky assets, there is a chance it could positively impact BTC.

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